Minutes of the Board of Regents of Stephen F. Austin State University. 1995, Volume No. 134

Stephen F. Austin
State University
Minutes of the
Board of Regents
Austin, Texas
January 25,1995
Volume 134
Table of Contents
January 25,1995
95-24 Approval of Minutes of October 21,1994 1
95-25 Approval of Minutes of November 22,1994 1
95-26 Faculty and Staff Appointments for Spring 1995, University Affairs 1
95-27 Faculty and Staff Appointments for Spring 1995, Business Affairs 2
95-28 Faculty and Staff Appointments for Spring 1995, College of Fine Arts 2
95-29 Faculty and Staff Appointments for Spring 1995, Academic Affairs 2
95-30 Changes of Status 2
95-31 Leaves of Absence 5
95-32 Retirements 5
95-33 Underenrolled Class Report for the Spring Semester, 1995 5
95-34 Twelfth Class Day Report 5
95-35 Last Class Day Report 5
95-36 Policy on Computer Security 5
95-37 Top Ten Scholarship Program 5
95-38 Correction of Investment Policy 6
95-39 Delay Implementation of New Fee Schedule for Coffield Pending Contract
Renewal 6
95-40 Purchase of Replacement Farm Equipment for Agriculture 6
95-41 Purchase of Telemarketing System for University Advancement 6
95-42 Purchase of Laser Printing System for VAX Cluster 6
95-43 Upgrade of Telecommunications Network to Accommodate Telephone
Registration 6
95-44 Purchase of Voice Response Hardware for Telephone Registration 6
95-45 Upgrade of VAX Mainframe Computer to Accommodate Telephone
Registration 6
95-46 SFASU Foundation, Inc. Agreement 6
95-47 SFASU Alumni Association Agreement 7
95-48 SFASU Alumni Foundation Agreement 7
95-49 Budget Items Less than $50,000 7
95-50 Review of Monroe Vos Contract 7
95-51 Purchase of Real Estate, SFA Theatre 7
95-52 Purchase of Real Estate, Vacant Lots on Carolyn and Baker Streets 7
95-53 Partial Renovation of Birdwell Building 7
95-54 Repair of Utility System 8
95-55 Purchase of Computer System for the Physical Plant 8
95-56 Review Bids on Auxiliary Services Building 8
Reports
Faculty Senate
Student Government Association
Vice President for University Advancement
President
Appendix No. 1 - Policy on Computer Security
Appendix No. 2 - SFASU Fbundation, Inc. Agreement
Appendix No. 3 - SFASU Alumni Association Agreement
Appendix No. 4 - SFASU Alumni Foundation Agreement
Appendix No. 5 - Budget Items Less Than $50,000
MINUTES OF THE MEETING
BOARD OF REGENTS
STEPHEN F. AUSTIN STATE UNIVERSITY
AUSTIN, TEXAS
January 25, 1995
The meeting was called to order at 9:12 a.m. by Ron Adkison. Board members present:
Ron Adkison, Dionne Bagsby, Roy Blake, Larry Christopher, Retta Kelley, Lynn Montes,
Murray Shaw, Jim Windham. Absent: Sissy Austin.
Others present: Dr. Dan Angel, Dr. Janelle Ashley, Mr. Charles Hardy, Dr. Jerry Holbert,
Dr. Baker Pattillo, Ms. Yvette Clark, Mr. Justin Darland, Mr. Trent Hill, Mr. Dennis
Jones, Mr. Mike Jennings, Mr. Steve McGee, Mr. Jared Wylie, and Mr. David Bloom.
95-24
Upon motion of Regent Windham, seconded by Regent Christopher with all members
voting aye, it was ordered that the minutes of October 21,1994 be approved.
95-25
Upon motion of Regent Montes, seconded by Regent Windham with all members voting
aye, it was ordered that the minutes of November 22,1994 be approved, as amended.
95-26
Upon motion of Regent Shaw, seconded by Regent Windham with all members voting
aye, it was ordered that the following appointments be approved.
1. University Affairs
Mr. John A. Pearce, Head Football Coach, at a salary of $72,600 for twelve
months, effective February 1,1995.
Mr. Eddie Blister, Assistant Coach and Instructor of Kinesiology, at a salary of
$44,629 for 10.5 months, effective February 1, 1995.
Mr. Eugene Chizik, Jr., Assistant Coach and Instructor of Kinesiology, at a salary
of $33,854 for 10.5 months, effective February 1,1995.
Mr. Denzil Cox, Assistant Coach and Instructor of Kinesiology, at a salary of
$39,935 for 10.5 months, effective February 1,1995.
Mr. David Hughes, Assistant Coach and Instructor of Kinesiology, at a salary of
$44,629 for 10.5 months, effective February 1,1995.
Mr. Robert McFarland, Assistant Coach and Instructor of Kinesiology, at a salary
of $39,169 for 10.5 months, effective February 1, 1995.
Ms. Charlotte Jackson, Counselor, at a salary of $24,667 for twelve months,
effective November 16,1994
95-27
Upon motion of Regent Blake, seconded by Regent Shaw with all members voting aye, it
was ordered that the following appointment be approved.
2. Business Affairs
Mr. Michael CRear, Director of Financial Aid, at a salary of $52,000 for twelve
months, effective February 1,1995.
95-28
Upon motion of Regent Bagsby, seconded by Regent Shaw with all members voting aye, it
was ordered that the following appointment be approved.
3. College of Fine Arts
Dr. Ron Jones, Dean and Professor of Art, Ph.D. (University of Maryland,
College Park) at a salary of $76,000 for twelve months at 100% time, effective
February 1, 1995.
95-29
Upon motion of Regent Montes, seconded by Regent Shaw with all members voting aye, it
was ordered that the following appointment be approved.
4. Academic Affairs
Mr. Roger Bilow, as Director of Admissions at a salary of $47,000 for twelve
months at 100% time, effective March 1,1995.
95-30
Upon motion of Regent Shaw, seconded by Regent Bagsby with all members voting aye, it
was ordered that the following changes of status be approved.
1. Administrative Services
Dr. Florence Elliott-Howard, Lecturer, an additional $1,000 for teaching one
section of SFA 101 for the fall semester, 1994.
Dr. Tim Clipson, Professor, an additional $1,000 for teaching one section of SFA
101 for the fall semester, 1994.
2. Communication
Dr. Miles McCall, Assistant Professor, an additional $1,000 for teaching one
section of SFA 101 for the fall semester, 1994.
3. Computer Science
Mr. William W. Long, Instructor and Interim Director of McGee Computing Lab at
a salary of $40,183 for 12 months (100% for 9 months and 50% for 3 months) to
Instructor and Systems Administrator of McGee Computing Lab at a salary of
$42,000 for 12 months (100% for 9 months and 50% for 3 months), effective
January 1, 1995.
Mr. Greg T. Harber from Lab Assistant at a salary of $3,750 for 50% time for fall
semester to Instructor and Director, McGee Laboratory at a salary of $35,700 for
12 months (100% for 9 months and 50% for 3 months), effective January 1,1995.
4. Counseling and Career Services
Mr. Bailey Nations, Counselor, an additional $1,000 for teaching one section of
SFA 101 for the fall semester, 1994.
5. Elementary Education
Ms. Mary Nelle Branson, Instructor, an additional $500 for teaching an overload
course for the fall semester, 1994.
Dr. John T. Thornton, Professor, an additional $1,000 for teaching an overload
course for the fall semester, 1994.
6. Forestry
Dr. David L. Kulhavy, Professor, an additional $1,000 for teaching one section of
SFA 101 for the fall semester, 1994.
7. Human Services
Ms. Karin H. Ebarb, Instructor, an additional $1,000 for teaching one section of
SFA 101 for the fall semester, 1994.
Dr. Patsy Hallman, Associate Dean of Education, an additional $1,000 for teaching
one section of SFA 101 for the fall semester, 1994.
8. Mathematics/Statistics
Mr. Robert F. Feistel, Adjunct Faculty, an additional $1,148 for one month due to
illness of a faculty member.
Dr. Kenneth H. Price, Associate Professor, an additional $1,148 for one month
due to illness of a faculty member.
9. Secondary Education
Dr. Buster D. Brannen from Chair and Professor at a salary of $59,000 for 100%
time (11 months) to Professor at a salary of $42,000 for 100% time (9 months)
effective November 1, 1994.
Dr. William C. Heeney from Professor at a salary of $51,211 for 100% time (9
months) to Interim Chair and Professor at a salary of $69,281 for 100% time (11
months) effective November 1, 1994.
10. Social Work
Dr. Linda B. Morales, Assistant Professor, an additional $1,000 for teaching one
section of SFA 101 for the fall semester, 1994.
11. Sociology
Dr. Thomas Segady, Associate Professor, an additional $1,000 for teaching one
section of SFA 101 for the fall semester, 1994.
12. Library (Academic Assistance Resource Center)
Ms. Melissa Darlington, Director of AARC, an additional $1,000 for teaching one
section of SFA 101 for the fall semester, 1994.
13. Student Development
Dr. Peggy S. Scott, Assistant Dean, an additional $1,000 for teaching one section
of SFA 101 for the fall semester, 1994.
14. President's Office
Ms. Peggy A. Green from Executive Secretary (classified position) at a salary of
$17,640 for twelve months to Executive Assistant (non-classified position) at a
salary of $20,000 for twelve months, effective January 1,1995.
Ms. Sue A. Zienko from Executive Secretary (classified position) at a salary of
$17,640 for twelve months to Executive Assistant (non-classified position) at a
salary of $20,000 for twelve months, effective January 1,1995.
15. University Affairs
Ms. Jennifer Rowe, from Hall Director m, at a salary of $10,620 for nine months
to Coordinator of Residence Life at a salary of $20,796 for twelve months,
effective November 21,1994.
Ms. Luella Stringer, from Executive Assistant to the President and ADA
Coordinator at a salary of $45,000 for twelve months to Director of Disability
Services and ADA Coordinator at a salary of $45,000 for twelve months, effective
January 1, 1995.
95-31
Upon motion of Regent Bagsby, seconded by Regent Christopher with all members voting
aye, it was ordered that the following leaves of absence be granted.
1. English and Philosophy
Dr. Elfrida R. Beaty, Assistant Professor, to accept the position of Visiting
Professor at L'Universite de Rennes, France, effective spring semester, 1995 to
May 12, 1995. (Leave without pay)
2. Music
Dr. Daniel J. Beaty, Professor, to teach at L'Universite de Rennes, France effective
spring semester, 1995 to May 12, 1995. (Leave without pay)
95-32
Upon motion of Regent Blake, seconded by Regent Montes with all members voting aye, it
was ordered that the following retirements be accepted.
1. Communication
Dr. Donald L. Graham, Assistant Professor, effective December 31,1994.
2. Elementary Education
Dr. Wendall N. Spreadbury, Professor, effective December 31,1994.
3. Forestry
Dr. Hershel C. Reeves, Professor, effective December 31,1994.
95-33
Upon motion of Regent Windham, seconded by Regent Bagsby with all members voting
aye, it was ordered that the Chairman of the Board be authorized to approve the
Underenrolled Class Report for the spring semester, 1995.
95-34
Upon motion of Regent Montes, seconded by Regent Christopher with all members voting
aye, it was ordered that the Chairman of the Board be authorized to approve the Twelfth
Class Day Report for the spring semester, 1995.
95-35
Upon motion of Regent Shaw, seconded by Regent Montes with all members voting aye, it
was ordered that the Last Class Day Report for the fall semester, 1994, be approved
95-36
Upon motion of Regent Christopher, seconded by Regent Montes with all members voting
aye, it was ordered that the Computer and Network Security Policy, attached as Appendix
No. 1, be approved and implemented effective immediately.
95-37
Upon motion of Regent Shaw, seconded by Regent Montes with all members voting aye, it
was ordered that the Top Ten Scholarship Program be approved, effective Fall 1995.
95-38
Upon motion of Regent Montes, seconded by Regent Christopher with all members voting
aye, it was ordered that the Investment Policy be amended to exclude appreciation of the
corpus of the endowment fund as a part of the amount to be distributed to the various
expenditure accounts.
95-39
Upon motion of Regent Shaw, seconded by Regent Windham with all members voting
aye, it was ordered that implementation of fee changes for the Coffield program be delayed
until negotiation of the new contract, effective the fall semester 1995.
95-40
Upon motion of Regent Bagsby, seconded by Regent Shaw with all members voting aye it
was ordered that $60,000 of HEAF funds be allocated to replace the old farm equipment in
the Agriculture Department, following State purchasing procedures, and that the President
be authorized to sign the purchase orders.
95-41
Upon motion of Regent Christopher, seconded by Regent Windham with all members
voting aye, it was ordered that bids are to be solicited for the purchase of a telemarketing
system and that the President be authorized to sign the necessary purchase documents. The
estimated cost of the system is $117,000 and the source of funds will be HEAF.
95-42
Upon motion of Regent Bagsby, seconded by Regent Montes with all members voting aye,
it was ordered that bids are to be solicited for the purchase of a laser printing system for the
VAX cluster at an estimated cost of $63,000 and that the President be authorized to sign the
necessary purchase documents. Source of funds will be HEAF.
95-43
Upon motion of Regent Blake, seconded by Regent Bagsby with all members voting aye, it
was ordered that $100,000 of HEAF funds be allocated to upgrade the telecommunications
system and that the President be authorized to sign the necessary purchase documents.
95-44
Upon motion of Regent Shaw, seconded by Regent Montes with all members voting aye, it
was ordered that $100,000 of HEAF funds be allocated to purchase the necessary interface
equipment to support telephone registration and that the President be authorized to sign the
necessary purchase documents.
95-45
Upon motion of Regent Christopher, seconded by Regent Windham with all members
voting aye, it was ordered that $48,000 of HEAF funds be allocated to upgrade the DEC
VAX mainframe computer and mat the President be authorized to sign the purchase order.
95-46
Upon motion of Regent Windham, seconded by Regent Shaw with all members voting
aye, it was ordered that die Board Finance Committee and Regent Blake will contact the
Trustees of die Stephen F. Austin State University Foundation, Inc. to amend die wording
of die Agreement Between Stephen F. Austin State University and The Stephen F. Austin
State University Foundation, Inc. The Finance Committee is to dien review die investment
policy and make a recommendation to die Board of Regents at die April Boaid meeting.
95-47
Upon motion of Regent Windham, seconded by Regent Shaw with all members voting
aye, it was ordered that the Board Finance Committee and Regent Blake will contact the
Officers and Directors of the Stephen F. Austin State University Alumni Association to
amend the wording of the Agreement Between Stephen F. Austin State University and The
Stephen F. Austin State University Alumni Association. The Finance Committee is to then
review the investment policy and make a recommendation to the Board of Regents at the
April Board meeting.
95-48
Upon motion of Regent Windham, seconded by Regent Shaw with all members voting
aye, it was ordered that the Board Finance Committee and Regent Blake will contact the
Board of Directors of the Stephen F. Austin State University Alumni Foundation to amend
the wording of the Agreement Between Stephen F. Austin State University and The
Stephen F. Austin State University Alumni Foundation. The Finance Committee is to then
review the investment policy and make a recommendation to the Board of Regents at the
April Board meeting.
95-49
Current Board policy authorizes the President to approve budget changes in amounts of
$50,000 or less and the Board has instructed the administration to provide it with a
summary of such changes. The report was included in Appendix 5 of the Board agenda
and no action was required.
95-50
Upon motion of Regent Christopher, seconded by Regent Shaw with all members voting
aye, it was ordered that the President is to notify Prudential Securities Incorporated and the
Monroe-Vos Group that the current contract will be terminated no later than thirty (30) days
hence. The President is also instructed to develop and execute a new contract with the
Monroe-yos Group to provide financial management services under the same general terms
and conditions as the original contract, the new contract to be for die unexpired term of the
original contract only. Upon execution of a new contract with the Monroe-Vos Group, the
President is instructed to cause the University's accounts at Prudential Securities
Incorporated to be transferred to PaineWebber Incorporated.
95-51
Upon motion of Regent Blake, seconded by Regent Montes with all members voting aye, it
was ordered that the President be authorized to pursue the purchase of the SFA Theatre, as
discussed in executive session and as required by law.
95-52
Upon motion of Regent Blake, seconded by Regent Montes with all members voting aye, it
was ordered that the President be authorized to pursue the purchase of the two vacant lots
on Baker and Carolyn Streets, as discussed in executive session and as required by law.
95-53
Upon motion of Regent Montes, seconded by Regent Shaw with all members voting aye, it
was ordered that $50,000 of HEAF funds be allocated for the purpose of renovating the
restrooms on the second floor of the Birdwell Building, and that the President be
authorized to sign the necessary purchase documents.
95-54
Upon motion of Regent Windham, seconded by Regent Christopher with all members
voting aye, it was ordered that $100,000 of HEAF funds be allocated for repair of the
utility system, following State purchasing procedures, and that the President be authorized
to sign any necessary purchase documents.
95-55
Upon motion of Regent Bagsby, seconded by Regent Kelley with all members voting aye,
it was ordered that the administration be authorized to procure replacement software for the
Physical Plant Office through the State Purchasing Commission and that the President be
authorized to sign the necessary purchase documents. The estimated cost is $140,000 and
the source of funds is to be HEAF.
95-56
Upon motion of Regent Blake, seconded by Regent Shaw with all members voting aye, it
was ordered that the administration be authorized to obtain bids for the construction of die
Housing Services Building on a third site, located east of the of the parking lot for the
University Wood Apartments, and to present those bids at the April Board meeting.
REPORTS
A. Faculty Senate
•Letter submitted by the President
B. Student Government Association
•Favorable support to scholarship commitment
•Student evaluation of faculty
C. Vice President for University Advancement
D. President
•Recruitment efforts
•North East Texas initiative
•Legislative budget
Regent Adkison announced Regent Austin's appointment of Austin, Christopher, and
Shaw to the Regents Nominating Committee.
The next meeting will be April 28 and 29 in Nacogdoches.
Meeting adjourned at 12 noon.
Appendix 1
Computer & Network Security
Original Implementation:
Last Revision: None
Purpose
To establish conditions for use of, and requirements for appropriate security to cover University
computers, available information technology, and networks.
Scope
This policy is effective at all University locations or data centers and represents the minimum
requirements that must be in place. Individual areas that have computers and networks may have
additional controls and security, but they are in addition to this Policy.
Responsibility
The University Computing and Telecommunications Advisory Committee is responsible for the
development of university-wide policies, controls and procedures to protect the university
network and information systems from intentional or inadvertent modification, disclosure of
confidential information, or destruction. The committee is also responsible for education of the
campus community in the ethical use of computer information and network facilities.
Policy
At each data center, appropriate security shall include:
1. Protection of the privacy of confidential information
2. Protection of information against unauthorized modification
3. Protection of systems against unauthorized access.
In order to maintain such security, the university reserves the right to:
1. Limit, restrict, or terminate an account holder's usage
2. Inspect, copy, remove, or otherwise alter any data, file, or system resource which may
undermine the authorized use of that system, with or without prior notice to the user.
3. Periodically check the systems and take any other such actions necessary to protect the
university computers, information, and networks.
Each data center facility at Stephen F. Austin State University must develop an internal security
document to cover such details as the type of access controls (minimum length of passwords,
other type of accessing, etc.), disaster recovery plans, contingency plans for continuous operation
in case of power outages, etc. Those documents are considered to be part of this Policy
statement.
The University shall not be liable for, and the user assumes the risk of, loss of data or interference
with files resulting from the University's efforts to maintain the privacy and security of the
University's computer, information and network facilities.
Access to, and use of computers and computer networks
Individuals are expected to exercise responsible, ethical behavior when using the University's
computers, information, networks or resources.
1. Access to some university computer systems, accounts and resources is limited to
designated individuals. Access is provided through the establishment of an account.
Issuance of passwords and designation of some computer accounts must be approved in
writing through the respective dean or director (or designated representative) of the
administrative unit. The unauthorized use of university computer systems, accounts and
resources; the unauthorized use of another person's computer account; and the provision
of false or misleading information systems are prohibited and will be subject to the
sanctions described in this policy.
2. Each user is responsible for understanding and complying with the security rules of
University computer systems. Authorized users shall take all reasonable precautions to
prevent use of University computer systems by unauthorized persons.
3. Use of another persons' account or access to the University's computer systems without
authorization is prohibited. Authorization shall not be given for anyone to use another's
account(s) unless such authorization is specifically requested in writing, and approved in
writing by the account owner and the respective Dean or Director (or authorized
representative) of the computer or network. The authorized user(s) of an account is (are)
responsible for all usage on that account. Account owners shall take all reasonable
precautions, including password maintenance and file protection measures, to prevent use
of accounts by unauthorized persons. Accounts must only be used for the purposes for
which they were authorized.
4. Users have the responsibility to use available mechanisms and procedures to protect their
own programs, programs in software libraries, and data. They also are responsible for
assisting in the protection of the systems they use.
5. Individuals1 programs, programs in software libraries, and data that belong to another
account shall not be accessed or copied without prior authorization from the account
holder. Individuals may not transport such files to other computer sites without written
permission.
6. Computer software protected by copyright is not to be copied from, into or by using
University computers, except as permitted by law or by the license or contract with the
owner of the copyright. The software license or contract will define number of copies,
simultaneous users, machine exclusivity, etc. It is the responsibility of the individual and
department which orders/purchases the software to read and follow the terms of the
software license agreement.
7. University computer systems are reserved for use only for University-related activities.
(See Chapter 39 of the Texas Penal Code for provisions dealing with the misuse of state
property.) The intentional deletion or alteration of information or data of others,
intentional misuse of system resources, and permitting misuse of system resources by
others is prohibited.
8. Individuals aware of any breach of information system or network security, or
compromise of computer security safeguards, must report such situations to the dean or
director (or designated representative) of the data center in which the incident occurred.
The data center representative will contact other campus departments as appropriate.
Sanctions for policy violations
Violation of any provision of this policy may result in but are not limited to: (i) a limitation on a
user's access to some or all University computer systems, (ii) the initiation of legal action by the
University, including, but not limited to, criminal prosecution under appropriate State and Federal
laws (See Chapter 33 of the Texas Penal Code), (iii) the requirement of the violator to provide
restitution for any improper use of service, and (iv) disciplinary sanctions, which may include
dismissal. Applicable University discipline and/or discharge policies will be followed in the
imposition of sanctions related to a violation of this policy.
Course and Work Related Access to Computers and Computer Networks
Many academic courses and work-related activities require the use of computers, networks and
systems of the University. In the event of an imposed restriction or termination of access to some
or all University computers and systems, a user enrolled in such courses or involved in computer
related work activities may be required to use alternative facilities, if any, to satisfy the obligation
of such courses or work activity. However, users are advised that if such alternative facilities are
unavailable or not feasible, the user bears the responsibility for failure to complete requirements
for course work or work responsibility.
Source of Authority: Vice President for Academic Affairs, and Vice President for Business
Affairs
Cross Reference: None
Contact for Revision: Computing and Telecommunications Advisory Committee
Forms: None
Appendix 2
AGREEMENT BETWEEN
STEPHEN F. AUSTIN STATE UNIVERSITY
AND
THE STEPHEN F. AUSTIN STATE UNIVERSITY FOUNDATION, INC.
L PARTIES
11 Stephen F. Austin State University (the "University") is an
agency of the State of Texas, organized and existing under
Chapter 101, Texas Education Code, as an institution of higher
education located in Nacogdoches, Texas. The governing body
of the University is the Board of Regents (collectively, the
"Regents").
1.2 The Stephen F. Austin State University Foundation, Inc. (the
"Foundation") is a non-profit corporation organized under
the laws of the State of Texas for the sole purpose of supporting
the mission of the University. The governing body of the
Foundation is its Board of Trustees (collectively, the "Trustees").
2. PURPOSE
2.1 The Foundation is a private support organization as defined in
article 6252-1 If, Texas Revised Civil Statutes C6252-11O.
2.2 The University is a state agency as defined in 6252-1 If.
2.3 The parties are entering into this agreement for the purpose of
defining the relationship between them pursuant to 6252-1 If,
and to implement the policy of the Regents governing the
University's relationship with private support organizations.
Agreement between
Stephen F. Austin State University and
The Stephen F. Austin State University Foundation, Inc.
Page 2
PURPOSE (continued!
2.4 While this agreement is in effect, the University
recognizes the Foundation as existing solely for the
support of the University. The parties agree that the
Foundation is a necessary and beneficial component
of the University's overall program for university
advancement and for the development of private
sources of funding for capital acquisition, operations,
endowments, scholarships, and other purposes relating
to the . mission of the University.
1 TERM
3.1 Provided the Foundation has first executed this agreement,
this agreement is effective upon its approval by the Regents.
3.2 This agreement will continue in effect until terminated.
Either party may terminate this agreement by giving ninety
days' written notice to the other party.
Agreement between
Stephen F. Austin State University and
The Stephen F. Austin State University Foundation, Inc.
Page 3
4, ORGANIZATION OF THE FOUNDATION
4.1 The direction and management of the affairs of the Foundation
and the control and disposition of its assets shall be vested in a
Board of Trustees which shall consist of not less
than nine (9) persons and not more than thirty (30) persons.
4.2 The President of the University may serve as an ex officio. non-voting
member of the Board of Trustees.
4.3 The officers of the Foundation shall be a Chairman, a Vice Chair
man, and a Secretary/Treasurer.
4.4 The Vice President for University Advancement of the University
will serve as the Executive Director of the Foundation pursuant to
the bylaws of the Foundation and the direction of the Trustees.
5j USE OF UNIVERSITY PERSONNEL AND SPACE BY FOUNDATION
5.1 The University will provide personnel as necessary in the
determination of the Vice President/Executive Director
for the support of the Foundation's business activities.
5.2 The University will provide office space, equipment, and
supplies as necessary in the determination of the Vice
President/Executive Director for the Foundation to carry
out its responsibilities.
Agreement between
Stephen F. Austin State University and
The Stephen F. Austin State University Foundation, Inc.
Page 4
53 The personnel services, office space, equipment, and
supplies provided by the University under this agreement
will be made without charge to the Foundation.
5.4 However, any conflict between University employees'
fiduciary responsibilities to cither the University or the
Foundation will be resolved in favor of the University.
& FOUNDATION INVESTMENTS AND RECORD-KEEPING
6.1 The Foundation shall hold, invest, and account for all
funds belonging or entrusted to it in accordance with
the Investment Policy of the SFASU Foundation, Inc.
as approved by its Board of Trustees in January, 1995
(Attachment "A"). In discharging its responsibility for
management of such funds the Foundation will retain a
qualified investment management consultant who is
independent of the security brokerage firms that execute
transactions for the accounts of the Foundation. Periodic
reports of the Foundation accounts and investments shall
be provided to the University.
Agreement between
Stephen F. Austin State University and
The Stephen F. Austin State University Foundation, Inc.
Page 5
6.2 The University shall have the right to audit the books
and records of the Foundation concerning Foundation
investments at any time.
1 PAYMENT OF FUNDS TO THE IJNTVERSITY
7.1 Payments to the University from Foundation endowed
accounts shall be made on a semi-annual basis.
7.2 Payments to the University from Foundation nonendowed
accounts shall be made on a timely basis.
7.3 Payments to the University of gifts for specific programs
and/or projects made through the Foundation shall be
made within thirty (30) days of receipt of the gift.
7.4 The Vice President for University Advancement/Executive
Director shall coordinate all payment schedules with appro
priate University officials.
7.5 The Foundation may reimburse University Employees for
expenses incurred in the conducting of Foundation business,
for services rendered on behalf of the Foundation, and as
awards for exemplary service or achievement.
& FUND RAISING EFFORTS OF FOUNDATION
8.1 The coordination of the Foundation's fund raising efforts
shall be through the Vice President for University
Advancement/Executive Director reporting to the President
of the University.
Agreement between
Stephen F. Austin State University and
The Stephen F. Austin State University Foundation, Inc.
Page 6
FUND RAISING EFFORTS OF FOUNDATION
8.2 The Foundation is authorized to raise funds for the University
in three (3) broad areas:
Regular Gifts -
Special Gifts -
Ultimate Gifts -
those gifts which are solicited and
received on a regular basis cither
restricted or unrestricted utilizing
speculative techniques such as
direct mail and telemarketing.
those gifts which are solicited and
received on an as-needed basis for
specific items, programs and/or
projects generally involving
personal or formal approaches.
those large gifts capable of making
major impacts upon the quality of
teaching, research and service
involving highly personal cultiva
tion and solicitation approaches
including estate planning vehicles.
8.3 The Office of University Advancement shall maintain all donor
lists, files and gift records and will coordinate all donor
recognition activities.
President
Stephen F. Austin State University
Date
Chairman Date
Stephen F. Austin State University Foundation, Inc.
Stephen F. Austin State University Foundation, Inc.
Endowment Plan
Investment Policy Statement
I. Purpose of the Investment Policy Statement
A. This Statement of Investment Policy outlines the objective, goals and guidelines for the
Foundation Endowments and is set forth in order that:
1. There be a clear understanding between the Stephen F. Austin State
University Foundation, Inc. Board of Trustees (hereafter referred to as Board of
Trustees) and the Investment Committee to insure compliance within the investment
objectives and policies of Endowments.
2. The Investment Committee be given guidance and limitations in the investment
of the Endowment assets.
3. The Board of Trustees have a meaningful basis for the evaluation of the
portfolio management by the Investment Committee, Investment Advisor, Financial
Officer, and Fund Managers in order that the Board of Trustees meet its
responsibility to prudently monitor investment of the Endowments.
B. The Endowments shall be managed at all times in accordance and compliance with the
standard of prudent investment.
1. The investment of the Endowments assets shall be for the exclusive purpose of
providing resources for the recipients as outlined by each Endowment agreement.
2. The investment shall be prudently selected to mirtimize credit risk and interest
rate risk, and properly diversified so as to minimize market risk.
C. It is the intent of this document to state general attitudes, guidelines and a philosophy
which will guide the Investment Committee toward the performance desired. It is intended
that the investment policies be sufficiently specific to be meaningful but adequately flexible
to be practicable.
II. Responsibilities of the Board of Trustees
A. The specific responsibilities of the Board of Trustees in the investment process include
but are not limited to:
1. Complying with all applicable rulings and regulation of relevant regulatory
agencies.
2. Complying with all applicable rulings and regulations concerning prudent
investing.
3. Determining the Foundations/University's projected financial needs and
communicating them to the Investment Committee on a timely basis.
4. Expressing the Foundations risk tolerance level.
5. Developing sound and consistent investment policy guidelines which the
Investment Committee can use in formulating investment decisions.
6. Establishing reasonable investment objectives.
7. Selecting qualified Investment Manager(s)
8. Communicating clearly the major duties and responsibilities of the Investment
Committee, and Financial Officer.
9. Monitoring and evaluating performance results to assure that policy guidelines
are being adhered to and that objectives are being met.
. 10. Taking appropriate action to replace an Investment Managers) for failure to
perform as expected.
B. The Board of Trustees recognizes that its role is advisory as to investment strategy and
policy. The determination and selection of specific investments and securities must be
delegated to the Investment Committee.
C. The investment policy objectives, goals and guidelines that follow represent the current
views of the Board of Trustees regarding the investment of the Foundations assets. The
Investment Policy Statement will need to be reviewed and possibly revised from time to
time to ensure that this Statement continues to reflect the Board of Trustees attitudes,
expectations and objectives.
D. The Board of Trustees will select an Investment Advisor to evaluate and monitor
performance and to provide independent analysis and recommendation to the Investment
Committee, and Financial Officer.
E. Custodial: The Board of Trustees will select a suitable custodian and its agent / broker
to oversee all securities and brokerage transactions and will provide monthly detail of all
such transactions to the Investment Committee, Financial Officer, and Investment Advisor
and any firms selected to monitor the Investment Manager(s).
III. Responsibilities of the Investment Manager(s)
A. Adherence to Investment Policy Statement
1. The Investment Manager(s) are expected to respect and observe the specific
limitations, guidelines, attitudes and philosophies stated herein, or as expressed in
any written amendments.
2. Each Investment Manager's acceptance of the responsibility to manage assets of
the Foundation will constitute a ratification of this Investment Policy Statement,
affirming the belief that they are realistically capable of achieving the Foundation's
objectives within the guidelines and limitations stated herein.
B. Discretionary Authority
The Investment Manager(s) will be responsible for making all investment decisions on a
discretionary basis regarding all assets placed under its jurisdiction and will be held
accountable for achieving the investment objectives indicated herein. Such discretion shall
include decisions to buy, hold, and sell securities in amounts and proportion that are
reflective of each Investment Manager's current investment strategy and compatible with
the Foundation's investment policy.
C. Communication
1. Each Investment Manager will keep the custodian informed on a timely basis of
major changes in its investment outlook, investment strategy, asset allocation, and
other matters affecting the investment policies or philosophy.
2. The Investment Committee shall be informed of any significant changes in the
ownership, organization structure, financial condition, or senior staffing of each
Investment Management firm.
3. Whenever the Investment Managers) believes that any particular guideline
should be altered or deleted, it will be the responsibility of the Investment
Manager(s) to initiate written communication with the Foundation through the
Investment Committee expressing its views and recommendations.
D. Reporting
1. The Investment Committee expects to receive timely nonces of transaction
activities as well as monthly statements and quarterly performance reports.
2. In addition, any information needed to assist the Investment Committee in
conducting an evaluation of the Investment Manager(s)1 performance as it relates to
Foundation assets will be presented on a timely basis. This will include
transactions activities and commissions generated to compensate the custodian for
consulting and other services as specified under Section 28(e) of the Securities and
Exchange Commission Act of 1934.
E. Proxy Voting:
The Investment Manager(s), as part of its duties and responsibilities, shall have sole and
exclusive right to vote any and all proxies solicited in connection with securities held by the
Foundation. The Investment Managers) shall keep accurate records with respect to its
voting of proxies.
F. Investment Transactions:
Understanding that the Investment Manager(s), as fiduciary, has the responsibility to
execute every transaction in the best interests of the Investment Committee and Foundation,
the Foundation reserves the right to direct brokerage commission to firms which provide
beneficial services directly to the Foundation, recognizing that the cost of such services
would otherwise have to be paid in hard dollars from the Foundation.
IV. Investment Philosophy
The SFA Foundation investment policy has the dual goals of investing to preserve the
purchasing power of the assets throughout time and to provide a stable flow of funds to
meet spending commitments. Preserving the purchasing power of assets allows future
generations to benefit from the endowment at the same level as the current generation.
Current income from investments is necessary to support the University's present
activities.
A economic trade - off exists between these two goals. Devoting excessive investments to
the goal of providing stable current funds would allow purchasing power risk to erode the
value of investment assets. Devoting excessive investments to the goal of growth of the
investment assets would introduce volatility into the flow of funds available for current
spending. Thus the Board of Trustees are continually striving to balance the tension that
these conflicting objectives creates.
The Board of Trustees has elected to use a laddered maturity strategy to increase the
probability that income will be sufficient to meet spending requirements without invading
the invested principal. The remainder of the portfolio, not invested in fixed income
securities, is invested in equity securities which will allow preservation of the purchasing
power of the assets under management. The equity investments are broadly diversified to
reduce the risk of principal loss.
•V, INVESTMENT GOALS AND OBJECTIVES
The Plan is a balanced portfolio composed of equities, fixed income, and cash equivalent
securities and, as such, is intended to be slightly more aggressive than fixed income-oriented
portfolios. (More than one investment Managers) may be hired to manage assets
of the Foundation, and one or more investment Manager may be woiicing with a portion of
the portfolio that is not "balanced11 among asset classes but may be limited to only one asset
class, such as equities, or a subset, such as foreign equities.) In this context "aggressive"
refers to such issues as the selection of investment vehicles, the degree of diversification
among economic and industry sectors and individual securities, and the expected long-term
rates of return and return volatility. Within this framework, the investment objectives for
the Foundation are stated below in order of importance:
1. Preservation of capital - Over the investment time horizon, capital gains are to be
protected. A positive return must be experienced over the investment time horizon,
considered to be a three year period.
2. Preservation of purchasing power - Asset growth, exclusive of contributions
and withdrawals, should exceed the rate of inflation in order to preserve purchasing
power of the participants1 assets.
3. Yield - A target yield will be set given the spending requirements set by the
Board of Trustees.
4. Liquidity - In response to Foundation's need to make distributions Semi-annually,
adequate cash will need to be available.
Investment Managers will be compared annually to other investment managers with similar
goals, investing in a similar universe of securities. To generate an overall investment
performance which will be compared to the following market indices: Consumer Price
Index (CPI), Standard & Poor's 500 stock index (S&P 500), Lehman
Government/Corporate bon index (SLGC), Wilshire 2000, Europe, Australia, and Far East
(EAFE), and US Treasury bills.
Each of the Investment Managers will be compared to other investment managers with
similar investment styles and selecting securities from a similar universe of securities.
For a one year time horizon, the Investment Manager should achieve a ranking within the
top 50% of similarly managed portfolios.
VI. INVESTMENT GUIDELINES
-The Foundation recognized that risk (i.e. the uncertainty of future events), volatility, (i.e.,
the potential of variability of asset values), and the possibility of loss in purchasing power
(due to inflation) are present to some degree in all types of investment vehicles. While high
levels of investment risk are to be avoided, the assumption of risk is warranted and
encouraged in order to allow the Investment Manager(s) the opportunity to achieve
satisfactory long-term results consistent with objectives and character of the Endowments.
A. Types of assets
All assets selected for the portfolio must have a readily ascertainable market value and must
be readily marketable. In order to provide the Investment Manager(s) with flexibility to
invest in various types of assets, the following lists the types of assets among those
approved for investment:
Equities
Common Stocks
Preferred Stocks, which must be cumulative and convertible, or cumulative
with warrants attached
Convertible securities including debentures
American Depository Receipts (ADRs) of Foreign Companies
Other investment securities consistent with the Investment Managers
objectives.
Fixed Income Investments
US Government and Agency bonds, notes and bills
Commercial paper
Certificates of Deposit
Corporate bonds
Mortgage backed securities
Other investment securities consistent with the Investment Managers
objectives.
The following types of assets or transactions are expressly prohibited:
Commodities
Futures and options, except for hedging purposes to reduce portfolio risk
Unrestricted letter stock
Private placements
Securities purchased on margin
Short selling
Real estate
Venture capital
Exotic Derivative(s)
Limited partnerships
Precious metals
B. Asset allocation
It shall be the policy of the Plan to invest its total assets in accordance with the maximum
and minimum range for each asset category as stated below:
Asset category Minimum Target Maximum
Equities 40% 49% 65%
Suggested Breakdown
of Equities:
Large Capital Growth 25% 30% 40%
Large Capital Value 25% 30% 40%
Small Capital Growth 5% 10% 15%
Small Capital Value 5% 10% 15%
International Equities 15% 20% 30%
Fixed income 30% 49% 75%
Cash and short term ' .5% 2% 10%
The asset mix policy and acceptable minimum and maximum ranges established by the
Foundation for the Endowments represent a long-term view. Is subject to change by a
recommendation of the Investment Committee and ratified by the Board of Trustees. The
Portfolio will be re-balanced semi-annually to the target portfolio weights. As such, rapid
and significant market movements may cause the actual asset mix to occasionally fall
outside the policy range, but it is expected that any divergence should be of a short-term
nature. If more than one investment Manager is used, the sum of all assets of the
Endowments will fall within the above ranges.
C. Stocks
1. Diversification - The equity portfolio should be well-diversified to avoid undue
exposure to any single economic sector, industry group of individual security. The
Investment Committee will diversify by geographic location so as to include
exposure to International securities. The portfolio will be diversified by style of
management, and by size of capitalization of issuers.
2. Quality and marketability - Common and convertible preferred stocks should be
of a good quality and listed on either the New York or American Stock Exchange or
traded in the over-the-counter market or foreign market with the requirement that
such stocks have adequate market liquidity relative to the size of the investments.
3. Concentration by Issuer
Security holdings of any one issuer may not represent more than 5% of fund total
portfolio value with exclusion of the United States Government, Holdings of any
one security may not represent more than 10% of the issue outstanding.
D. Fixed Income Investments
1. Quality - Marketable bonds must be Baa or BBB rated or better at all times.
2. Concentration by issuer:
a. No limitations are placed in investment in US Government guaranteed
obligations, including fully guaranteed Federal agencies.
b. Investment in any one issuer (excluding obligation of the US
Government either direct or implied) shall not exceed 5% of total fixed income fund
assets based on market value at the time of purchase.
3. Maturity - No fixed income securities should have a maturity of longer than ten
years at the time of purchase, nor an average life in aggregate exceeding seven
yean. Except where fixed income instruments are used to match a liability such as
a gift annuity.
E. Short Term Investments
1. Commercial paper
a. Quality - Investment must have a raring of not less than Al by Standard
& Poor's or PI by Moody's.
b. Concentration by issuer - Investment in any one issuer shall not exceed
5% of total Plan assets at the rime of purchase.
2. Certificates of Deposit
Will be F.D.I.C. insured or if more than Insurance limit will be backed by pledged
securities of acceptable quality.
F. Portfolio fluctuation - The volatility of returns will be monitored and evaluated by the
Investment Committee on a continuing basis.
VII. INVESTMENT PERFORMANCE REVIEW AND EVALUATION
A. Performance results for the Investment Manager will be measured on a quarterly basis.
B. Total Plan performance will be measured against a balanced market index weighed to
match the long-term asset mix policy in the Plan as stated in Section VI. B.
C. The investment performance of the total portfolio and equity and fixed income segments
(both in terms of return and risk) will be measured against commonly accepted bench
marks.
D. Consideration shall be given to the extent to which the investment results are consistent
with the investment objectives, goals and guidelines as set forth in this statement
E. While the Foundation intends to fairly evaluate portfolio performance over the agreed
period of evaluation, the Board of Trustees reserves the right to change the Investment
Managers) if there is:
1. Unacceptable justification for poor results.
2. Lack of responsiveness to the Foundation's overall concern about the market
or inflexibility of approach.
3. Failure to meet Foundation's communication and reporting requirements.
4. Changes in Foundation's investment objectives and/or goals.
5. Sufficient reason in the sole judgment of the Foundation to believe a change of
Investment Manager(s) would be beneficial.
AGREEMENT BETWEEN
STEPHEN F. AUSTIN STATE UNIVERSITY
AND
THE STEPHEN F. AUSTIN STATE UNIVERSITY ALUMNI ASSOCIATION
PARTIES/PURPOSE
1.1 Stephen F. Austin State University ("the University") is an agency of the State
of Texas, organized and existing as an institution of higher education located
in Nacogdoches, Texas. The governing body of the University is the Board
of Regents (collectively, "the Regents"). Under Chapter 2255 of the Texas
Government Code ("Chapter 2255") the University is an "agency" or "state
agency."
1.2 The Stephen F. Austin State University Alumni Association ("the Alumni
Association") is a non-profit corporation organized under the laws of the State
of Texas. The governing body of the Alumni Association is its Board of
Directors (collectively, "the Directors"). Under Chapter 2255 the Alumni
Association is a "private organization11 or "organization."
1.3 The parties are entering into this agreement for the purpose of complying with
the requirements set forth under Chapter 2255.
TERM
2.1 Provided the Alumni Association has first executed this agreement, this
agreement is effective upon its approval by the Regents.
2.2 This agreement will continue in effect until terminated. Either party may
terminate this agreement by giving ninety days' written notice to the other
party.
ORGANIZATION OF THE ALUMNI ASSOCIATION
3.1 The direction and management of the affairs of the Alumni Association and
the control and disposition of its assets is vested in the Directors which
consists of twenty-one persons; fourteen persons elected at large, the
president, two vice-presidents, secretary-treasurer, the executive director, the
immediate past president of the Association, and the last elected president of
the Student Congress of the University.
3.2 The officers of the Alumni Association are a president, two vice presidents, an
executive director, and a secretary-treasurer.
PROVISIONS REGARDING PERSONNEL, SPACE, AND SUPPLIES PROVIDED
BY THE UNIVERSITY TO THE ALUMNI ASSOCIATION
4.1 The University pays portions of the salaries of the following Alumni
Association personnel: Executive Director; Assistant to Executive Director;
Accounting Clerk; and Secretary.
4.2 The Alumni Association utilizes as its office space the Alumni Association
Building, located contiguous to the Stephen F. Austin State University Center.
The Alumni Association Building was built in the early 1980s and expanded
in the late 1980s, in each case with funds raised by the Alumni Association.
4.3 The University in its discretion will provide from time-to-time additional
personnel for the support of the Alumni Association's activities.
4.4 The University in its discretion will provide from time-to-time additional
office space, equipment, and supplies for the Alumni Association to carry out
its responsibilities.
4.5 The personnel services, office space, equipment, and supplies provided by the
University in its discretion from time-to-time under this agreement shall be
provided without charge to the Alumni Association.
4.6 Any conflict, however, between the University's employees' fiduciary
' responsibilities to either the University or the Alumni Association will be
resolved in favor of the University.
ALUMNI ASSOCIATION INVESTMENT AND ADMINISTRATION OF FUNDS
5.1 The Alumni Association will hold, invest, and account for all funds belonging
or entrusted to the Alumni Association in accordance with ordinary business
care and prudence under the facts and circumstances prevailing at the time of
the action or decision. (To that end, the Alumni Association will attempt
whenever and to the greatest extent possible to follow the Investments
Guidelines Policy promulgated by the Investment Committee of the Stephen
F. Austin State University Alumni Foundation.) Periodic reports of Alumni
Association accounts and investments shall be available for review by request
of the University not less than quarterly.
5.2 Concerning investments, the University and the Alumni Association shall
have the right to audit the books and records of either party at any time.
President Date
Stephen F. Austin State University
President Date
Stephen F. Austin State University Alumni Association
Appendix 4
AGREEMENT BETWEEN
STEPHEN F. AUSTIN STATE UNIVERSITY
AND
THE STEPHEN F. AUSTIN STATE UNIVERSITY ALUMNI FOUNDATION
PARTIES/PURPOSES
1.1 Stephen F. Austin State University ("the University") is an agency of the State
of Texas, organized and existing as an institution of higher education located
in Nacogdoches, Texas. The governing body of the University is the Board of
Regents (collectively, "the Regents"). Under Chapter 2255 of the Texas
Government Code ("Chapter 2255") the University is an "agency" or "state
agency."
1.2 The Stephen F. Austin State University Alumni Foundation ("the Alumni
Foundation") is a non-profit corporation organized under the laws of the State
of Texas. The governing body of the Alumni Foundation is its Board of
Directors (collectively, "the Directors"). Under Chapter 2255 the Alumni
Foundation is a "private organization" or "organization."
1.3 The parties are entering into this agreement for the purpose of complying with
the requirements set forth under Chapter 2255.
TERM
2.1 Provided the Alumni Foundation has first executed this agreement, this
agreement is effective upon its approval by the Regents.
2.2 This agreement will continue in effect until terminated. Either party may
terminate this agreement by giving ninety days1 written notice to the other
party.
ORGANIZATION OF THE ALUMNI FOUNDATION
3.1 The direction and management of the affairs of the Alumni Foundation and
the control and disposition of its assets is vested in the Directors which
consists of nine persons; six persons elected at large, the immediate past
president of the Stephen F. Austin State University Alumni Association, the
president of the Alumni Association, and the executive director of the Alumni
Association.
3.2 The officers of the Alumni Foundation are a Chairman of the Directors, a First
Vice-Chairman of the Directors, a Second Vice-Chairman of the Directors,
and a Secretary-Treasurer of the Directors.
PROVISIONS REGARDING PERSONNEL, SPACE, AND SUPPLIES PROVIDED
BY THE UNIVERSITY TO THE ALUMNI FOUNDATION
4.1 The University in its discretion will provide from tirae-to-time personnel for
the support of the Alumni Foundation's activities.
4.2 The University in its discretion will provide from time-to-time office space,
equipment, and supplies for the Alumni Foundation to carry out its
responsibilities.
4.3 The personnel services, office space, equipment, and supplies provided by the
University in its discretion from time-to-time under this agreement shall be
provided without charge to the Alumni Foundation.
4.4 Any conflict, however, between the University's employees' fiduciary
responsibilities to either the University or the Alumni Foundation will be
resolved in favor of the University.
ALUMNI FOUNDATION INVESTMENT AND ADMINISTRATION OF FUNDS
5.1 The Alumni Foundation will hold, invest, and account for all funds belonging
or entrusted to the Alumni Foundation in accordance with ordinary business
care and prudence under the facts and circumstances prevailing at the time of
the action or decision. To that end, the Alumni Foundation has created an
Investment Committee ("the Investment Committee"). The Investment
Committee has promulgated, and the Alumni Foundation has approved, an
investments guidelines policy, which is available for review by request of the
University at any time. The Alumni Foundation reserves the right to amend
its investments guidelines policy as and when necessary or appropriate to do
so. Periodic reports of Alumni Foundation accounts and investments shall be
available for review by request of the University not less than quarterly.
5.2 Concerning investments, the University and the Alumni Foundation shall have
the right to audit the books and records of either party at any time.
President Date
Stephen F. Austin State University
Chairman Date
Stephen F. Austin State University Alumni Foundation
Investments Guidelines Piffle
The Investment Committee of the Stephen F. Austin State University Alumni Foundation
( the Foundation11) has adopted the following Investments Guidelines Policy:
• One or more professional money managers shall be engaged to invest the majority
of the Foundation s funds in accordance with ordinary business care and prudence
under the facts and circumstances prevailing at the time of each action or decision.
• The professional money managers shall invest the Foundation's funds in
'Treasuries Accounts"and "Equities Accounts" (as defined and further
provided below), with the goal being to maintain a ratio between the Treasuries
Accounts and the Equities Accounts at all times as close to 60% to 40% as
practicable.
• Treasuries Accounts
At no time will any of the principal of the Funds1 in the Treasuries Accounts be
invested in other than:
Treasury Bills;
Treasury Bonds; and/or
Treasury Notes,
except with the express written consent of the Foundation; provided, however
(a) as and when interest payments are made in respect of a Treasury Bill,2
Treasury Bond, or Treasury Note, those proceeds posted to the Treasuries
Accounts shall promptly be invested in a money market account (which is on a
day-in-day-out basis) pending instructions from the Foundation; and (b) proceeds
from a Treasury Bill, Treasury Bond, or Treasury Note which matures or is sold
(which proceeds shall constitute principal of the Funds) shall promptly be
reinvested in a Treasury Bill, Treasury Bond, or Treasury Note unless the
professional money manager determines it is impossible, impracticable, or
untimely to do so, in which case those proceeds shall promptly be invested in a
money market account (which is on a day-to-day basis) pending reinvestment at
the earliest appropriate time.
With respect to the portfolio value of the principal of the Funds in the Treasuries
Accounts (as determined on a daily basis) the professional money manager:
• shall invest at least 50% cost of portfolio value in Treasury Bills, Treasury
Bonds, or Treasury Notes having maturity dates not longer than five years
1 "Principal of the Funds" means the funds of die Foundation which are initially transferred to the professional
money manager and any funds of the Foundation transferred from time to time thereafter (unless expressly
designated otherwise by the Foundation at the time of any subsequent transfers), the permutations thereof, and
capital gains in respect thereof. Thus, "principal of the Funds" is to be distinguished from interest earned
thereon and interest earned on such interest which has ^n^Mh^ from time to time.
2In the case of a Treasury Bill an "interest payment" or "interest earned thereon" shall mean the payment
received in respect of that Treasury B ill which equals the difference between the purchase price of that Treasury
Bill and the redemption proceeds received in respect of that Treasury BilL
1
from the date each of the same is acquired by the professional money
manager; and
• may invest up to 50% cost of portfolio value in Treasury Bills, Treasury
Bonds, or Treasury Notes having maturity dates up to ten years from the date
each of the same is acquired by the professional money manager.
Equities Accounts
At no time will any of the principal of the Funds in the Equities Accounts be
invested in other than 'quality equities' (fQEf) except with the express written
consent of the Foundation; provided, however (a) as and when dividend payments
are made in respect of QE, those proceeds posted to the Equities Accounts shall
promptly be invested in a money market account (which is on a day-in-day-out
basis) pending instructions from the Foundation; and (b) proceeds from QE which
mature or are sold (which proceeds shall constitute principal of the Funds) shall
promptly be reinvested in QE unless the professional money manager determines
it is impossible, impracticable, or untimely to do so, in which case those proceeds
shall promptly be invested in a money market account (which is on a day-to-day
basis) pending reinvestment at the earliest appropriate time.
The following qualifications and restrictions shall apply at all times to the
Equities Accounts:
• with respect to the portfolio value of the principal of the Funds in the Equities
Accounts (as determined on a daily basis), the professional money manager
may not invest more than:
•• 5% cost of portfolio value in any one issue of stock;
•• 15% cost of portfolio value in any one industry;
•• 15% cost of portfolio value in foreign securities, including American
depository receipts (ADRs) (current examples of ADRs are
Schlumberger, Ltd., Grand Metropolitan PLL ADS, Telefonos de
Mexico, and Nestle), subject to the two immediately preceding
investment restrictions.
Any of the foregoing notwithstanding, the professional money manager shall not
engage in any of the following:
•• commodities trading (including all future contracts);
•• purchase of letter stock;
•• short selling; or
•• option trading.
With respect to the Equities Accounts, the Foundation is hereby interested in and
hopeful that the professional money manager will be able to secure the highest
total return on the Funds in the Equities Accounts, consistent with prudent
management and diversification and in accordance with the guidelines set forth
above.
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Stephen F. Austin State University Minutes of the Board of Regents Austin, Texas January 25,1995 Volume 134 Table of Contents January 25,1995 95-24 Approval of Minutes of October 21,1994 1 95-25 Approval of Minutes of November 22,1994 1 95-26 Faculty and Staff Appointments for Spring 1995, University Affairs 1 95-27 Faculty and Staff Appointments for Spring 1995, Business Affairs 2 95-28 Faculty and Staff Appointments for Spring 1995, College of Fine Arts 2 95-29 Faculty and Staff Appointments for Spring 1995, Academic Affairs 2 95-30 Changes of Status 2 95-31 Leaves of Absence 5 95-32 Retirements 5 95-33 Underenrolled Class Report for the Spring Semester, 1995 5 95-34 Twelfth Class Day Report 5 95-35 Last Class Day Report 5 95-36 Policy on Computer Security 5 95-37 Top Ten Scholarship Program 5 95-38 Correction of Investment Policy 6 95-39 Delay Implementation of New Fee Schedule for Coffield Pending Contract Renewal 6 95-40 Purchase of Replacement Farm Equipment for Agriculture 6 95-41 Purchase of Telemarketing System for University Advancement 6 95-42 Purchase of Laser Printing System for VAX Cluster 6 95-43 Upgrade of Telecommunications Network to Accommodate Telephone Registration 6 95-44 Purchase of Voice Response Hardware for Telephone Registration 6 95-45 Upgrade of VAX Mainframe Computer to Accommodate Telephone Registration 6 95-46 SFASU Foundation, Inc. Agreement 6 95-47 SFASU Alumni Association Agreement 7 95-48 SFASU Alumni Foundation Agreement 7 95-49 Budget Items Less than $50,000 7 95-50 Review of Monroe Vos Contract 7 95-51 Purchase of Real Estate, SFA Theatre 7 95-52 Purchase of Real Estate, Vacant Lots on Carolyn and Baker Streets 7 95-53 Partial Renovation of Birdwell Building 7 95-54 Repair of Utility System 8 95-55 Purchase of Computer System for the Physical Plant 8 95-56 Review Bids on Auxiliary Services Building 8 Reports Faculty Senate Student Government Association Vice President for University Advancement President Appendix No. 1 - Policy on Computer Security Appendix No. 2 - SFASU Fbundation, Inc. Agreement Appendix No. 3 - SFASU Alumni Association Agreement Appendix No. 4 - SFASU Alumni Foundation Agreement Appendix No. 5 - Budget Items Less Than $50,000 MINUTES OF THE MEETING BOARD OF REGENTS STEPHEN F. AUSTIN STATE UNIVERSITY AUSTIN, TEXAS January 25, 1995 The meeting was called to order at 9:12 a.m. by Ron Adkison. Board members present: Ron Adkison, Dionne Bagsby, Roy Blake, Larry Christopher, Retta Kelley, Lynn Montes, Murray Shaw, Jim Windham. Absent: Sissy Austin. Others present: Dr. Dan Angel, Dr. Janelle Ashley, Mr. Charles Hardy, Dr. Jerry Holbert, Dr. Baker Pattillo, Ms. Yvette Clark, Mr. Justin Darland, Mr. Trent Hill, Mr. Dennis Jones, Mr. Mike Jennings, Mr. Steve McGee, Mr. Jared Wylie, and Mr. David Bloom. 95-24 Upon motion of Regent Windham, seconded by Regent Christopher with all members voting aye, it was ordered that the minutes of October 21,1994 be approved. 95-25 Upon motion of Regent Montes, seconded by Regent Windham with all members voting aye, it was ordered that the minutes of November 22,1994 be approved, as amended. 95-26 Upon motion of Regent Shaw, seconded by Regent Windham with all members voting aye, it was ordered that the following appointments be approved. 1. University Affairs Mr. John A. Pearce, Head Football Coach, at a salary of $72,600 for twelve months, effective February 1,1995. Mr. Eddie Blister, Assistant Coach and Instructor of Kinesiology, at a salary of $44,629 for 10.5 months, effective February 1, 1995. Mr. Eugene Chizik, Jr., Assistant Coach and Instructor of Kinesiology, at a salary of $33,854 for 10.5 months, effective February 1,1995. Mr. Denzil Cox, Assistant Coach and Instructor of Kinesiology, at a salary of $39,935 for 10.5 months, effective February 1,1995. Mr. David Hughes, Assistant Coach and Instructor of Kinesiology, at a salary of $44,629 for 10.5 months, effective February 1,1995. Mr. Robert McFarland, Assistant Coach and Instructor of Kinesiology, at a salary of $39,169 for 10.5 months, effective February 1, 1995. Ms. Charlotte Jackson, Counselor, at a salary of $24,667 for twelve months, effective November 16,1994 95-27 Upon motion of Regent Blake, seconded by Regent Shaw with all members voting aye, it was ordered that the following appointment be approved. 2. Business Affairs Mr. Michael CRear, Director of Financial Aid, at a salary of $52,000 for twelve months, effective February 1,1995. 95-28 Upon motion of Regent Bagsby, seconded by Regent Shaw with all members voting aye, it was ordered that the following appointment be approved. 3. College of Fine Arts Dr. Ron Jones, Dean and Professor of Art, Ph.D. (University of Maryland, College Park) at a salary of $76,000 for twelve months at 100% time, effective February 1, 1995. 95-29 Upon motion of Regent Montes, seconded by Regent Shaw with all members voting aye, it was ordered that the following appointment be approved. 4. Academic Affairs Mr. Roger Bilow, as Director of Admissions at a salary of $47,000 for twelve months at 100% time, effective March 1,1995. 95-30 Upon motion of Regent Shaw, seconded by Regent Bagsby with all members voting aye, it was ordered that the following changes of status be approved. 1. Administrative Services Dr. Florence Elliott-Howard, Lecturer, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. Dr. Tim Clipson, Professor, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 2. Communication Dr. Miles McCall, Assistant Professor, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 3. Computer Science Mr. William W. Long, Instructor and Interim Director of McGee Computing Lab at a salary of $40,183 for 12 months (100% for 9 months and 50% for 3 months) to Instructor and Systems Administrator of McGee Computing Lab at a salary of $42,000 for 12 months (100% for 9 months and 50% for 3 months), effective January 1, 1995. Mr. Greg T. Harber from Lab Assistant at a salary of $3,750 for 50% time for fall semester to Instructor and Director, McGee Laboratory at a salary of $35,700 for 12 months (100% for 9 months and 50% for 3 months), effective January 1,1995. 4. Counseling and Career Services Mr. Bailey Nations, Counselor, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 5. Elementary Education Ms. Mary Nelle Branson, Instructor, an additional $500 for teaching an overload course for the fall semester, 1994. Dr. John T. Thornton, Professor, an additional $1,000 for teaching an overload course for the fall semester, 1994. 6. Forestry Dr. David L. Kulhavy, Professor, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 7. Human Services Ms. Karin H. Ebarb, Instructor, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. Dr. Patsy Hallman, Associate Dean of Education, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 8. Mathematics/Statistics Mr. Robert F. Feistel, Adjunct Faculty, an additional $1,148 for one month due to illness of a faculty member. Dr. Kenneth H. Price, Associate Professor, an additional $1,148 for one month due to illness of a faculty member. 9. Secondary Education Dr. Buster D. Brannen from Chair and Professor at a salary of $59,000 for 100% time (11 months) to Professor at a salary of $42,000 for 100% time (9 months) effective November 1, 1994. Dr. William C. Heeney from Professor at a salary of $51,211 for 100% time (9 months) to Interim Chair and Professor at a salary of $69,281 for 100% time (11 months) effective November 1, 1994. 10. Social Work Dr. Linda B. Morales, Assistant Professor, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 11. Sociology Dr. Thomas Segady, Associate Professor, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 12. Library (Academic Assistance Resource Center) Ms. Melissa Darlington, Director of AARC, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 13. Student Development Dr. Peggy S. Scott, Assistant Dean, an additional $1,000 for teaching one section of SFA 101 for the fall semester, 1994. 14. President's Office Ms. Peggy A. Green from Executive Secretary (classified position) at a salary of $17,640 for twelve months to Executive Assistant (non-classified position) at a salary of $20,000 for twelve months, effective January 1,1995. Ms. Sue A. Zienko from Executive Secretary (classified position) at a salary of $17,640 for twelve months to Executive Assistant (non-classified position) at a salary of $20,000 for twelve months, effective January 1,1995. 15. University Affairs Ms. Jennifer Rowe, from Hall Director m, at a salary of $10,620 for nine months to Coordinator of Residence Life at a salary of $20,796 for twelve months, effective November 21,1994. Ms. Luella Stringer, from Executive Assistant to the President and ADA Coordinator at a salary of $45,000 for twelve months to Director of Disability Services and ADA Coordinator at a salary of $45,000 for twelve months, effective January 1, 1995. 95-31 Upon motion of Regent Bagsby, seconded by Regent Christopher with all members voting aye, it was ordered that the following leaves of absence be granted. 1. English and Philosophy Dr. Elfrida R. Beaty, Assistant Professor, to accept the position of Visiting Professor at L'Universite de Rennes, France, effective spring semester, 1995 to May 12, 1995. (Leave without pay) 2. Music Dr. Daniel J. Beaty, Professor, to teach at L'Universite de Rennes, France effective spring semester, 1995 to May 12, 1995. (Leave without pay) 95-32 Upon motion of Regent Blake, seconded by Regent Montes with all members voting aye, it was ordered that the following retirements be accepted. 1. Communication Dr. Donald L. Graham, Assistant Professor, effective December 31,1994. 2. Elementary Education Dr. Wendall N. Spreadbury, Professor, effective December 31,1994. 3. Forestry Dr. Hershel C. Reeves, Professor, effective December 31,1994. 95-33 Upon motion of Regent Windham, seconded by Regent Bagsby with all members voting aye, it was ordered that the Chairman of the Board be authorized to approve the Underenrolled Class Report for the spring semester, 1995. 95-34 Upon motion of Regent Montes, seconded by Regent Christopher with all members voting aye, it was ordered that the Chairman of the Board be authorized to approve the Twelfth Class Day Report for the spring semester, 1995. 95-35 Upon motion of Regent Shaw, seconded by Regent Montes with all members voting aye, it was ordered that the Last Class Day Report for the fall semester, 1994, be approved 95-36 Upon motion of Regent Christopher, seconded by Regent Montes with all members voting aye, it was ordered that the Computer and Network Security Policy, attached as Appendix No. 1, be approved and implemented effective immediately. 95-37 Upon motion of Regent Shaw, seconded by Regent Montes with all members voting aye, it was ordered that the Top Ten Scholarship Program be approved, effective Fall 1995. 95-38 Upon motion of Regent Montes, seconded by Regent Christopher with all members voting aye, it was ordered that the Investment Policy be amended to exclude appreciation of the corpus of the endowment fund as a part of the amount to be distributed to the various expenditure accounts. 95-39 Upon motion of Regent Shaw, seconded by Regent Windham with all members voting aye, it was ordered that implementation of fee changes for the Coffield program be delayed until negotiation of the new contract, effective the fall semester 1995. 95-40 Upon motion of Regent Bagsby, seconded by Regent Shaw with all members voting aye it was ordered that $60,000 of HEAF funds be allocated to replace the old farm equipment in the Agriculture Department, following State purchasing procedures, and that the President be authorized to sign the purchase orders. 95-41 Upon motion of Regent Christopher, seconded by Regent Windham with all members voting aye, it was ordered that bids are to be solicited for the purchase of a telemarketing system and that the President be authorized to sign the necessary purchase documents. The estimated cost of the system is $117,000 and the source of funds will be HEAF. 95-42 Upon motion of Regent Bagsby, seconded by Regent Montes with all members voting aye, it was ordered that bids are to be solicited for the purchase of a laser printing system for the VAX cluster at an estimated cost of $63,000 and that the President be authorized to sign the necessary purchase documents. Source of funds will be HEAF. 95-43 Upon motion of Regent Blake, seconded by Regent Bagsby with all members voting aye, it was ordered that $100,000 of HEAF funds be allocated to upgrade the telecommunications system and that the President be authorized to sign the necessary purchase documents. 95-44 Upon motion of Regent Shaw, seconded by Regent Montes with all members voting aye, it was ordered that $100,000 of HEAF funds be allocated to purchase the necessary interface equipment to support telephone registration and that the President be authorized to sign the necessary purchase documents. 95-45 Upon motion of Regent Christopher, seconded by Regent Windham with all members voting aye, it was ordered that $48,000 of HEAF funds be allocated to upgrade the DEC VAX mainframe computer and mat the President be authorized to sign the purchase order. 95-46 Upon motion of Regent Windham, seconded by Regent Shaw with all members voting aye, it was ordered that die Board Finance Committee and Regent Blake will contact the Trustees of die Stephen F. Austin State University Foundation, Inc. to amend die wording of die Agreement Between Stephen F. Austin State University and The Stephen F. Austin State University Foundation, Inc. The Finance Committee is to dien review die investment policy and make a recommendation to die Board of Regents at die April Boaid meeting. 95-47 Upon motion of Regent Windham, seconded by Regent Shaw with all members voting aye, it was ordered that the Board Finance Committee and Regent Blake will contact the Officers and Directors of the Stephen F. Austin State University Alumni Association to amend the wording of the Agreement Between Stephen F. Austin State University and The Stephen F. Austin State University Alumni Association. The Finance Committee is to then review the investment policy and make a recommendation to the Board of Regents at the April Board meeting. 95-48 Upon motion of Regent Windham, seconded by Regent Shaw with all members voting aye, it was ordered that the Board Finance Committee and Regent Blake will contact the Board of Directors of the Stephen F. Austin State University Alumni Foundation to amend the wording of the Agreement Between Stephen F. Austin State University and The Stephen F. Austin State University Alumni Foundation. The Finance Committee is to then review the investment policy and make a recommendation to the Board of Regents at the April Board meeting. 95-49 Current Board policy authorizes the President to approve budget changes in amounts of $50,000 or less and the Board has instructed the administration to provide it with a summary of such changes. The report was included in Appendix 5 of the Board agenda and no action was required. 95-50 Upon motion of Regent Christopher, seconded by Regent Shaw with all members voting aye, it was ordered that the President is to notify Prudential Securities Incorporated and the Monroe-Vos Group that the current contract will be terminated no later than thirty (30) days hence. The President is also instructed to develop and execute a new contract with the Monroe-yos Group to provide financial management services under the same general terms and conditions as the original contract, the new contract to be for die unexpired term of the original contract only. Upon execution of a new contract with the Monroe-Vos Group, the President is instructed to cause the University's accounts at Prudential Securities Incorporated to be transferred to PaineWebber Incorporated. 95-51 Upon motion of Regent Blake, seconded by Regent Montes with all members voting aye, it was ordered that the President be authorized to pursue the purchase of the SFA Theatre, as discussed in executive session and as required by law. 95-52 Upon motion of Regent Blake, seconded by Regent Montes with all members voting aye, it was ordered that the President be authorized to pursue the purchase of the two vacant lots on Baker and Carolyn Streets, as discussed in executive session and as required by law. 95-53 Upon motion of Regent Montes, seconded by Regent Shaw with all members voting aye, it was ordered that $50,000 of HEAF funds be allocated for the purpose of renovating the restrooms on the second floor of the Birdwell Building, and that the President be authorized to sign the necessary purchase documents. 95-54 Upon motion of Regent Windham, seconded by Regent Christopher with all members voting aye, it was ordered that $100,000 of HEAF funds be allocated for repair of the utility system, following State purchasing procedures, and that the President be authorized to sign any necessary purchase documents. 95-55 Upon motion of Regent Bagsby, seconded by Regent Kelley with all members voting aye, it was ordered that the administration be authorized to procure replacement software for the Physical Plant Office through the State Purchasing Commission and that the President be authorized to sign the necessary purchase documents. The estimated cost is $140,000 and the source of funds is to be HEAF. 95-56 Upon motion of Regent Blake, seconded by Regent Shaw with all members voting aye, it was ordered that the administration be authorized to obtain bids for the construction of die Housing Services Building on a third site, located east of the of the parking lot for the University Wood Apartments, and to present those bids at the April Board meeting. REPORTS A. Faculty Senate •Letter submitted by the President B. Student Government Association •Favorable support to scholarship commitment •Student evaluation of faculty C. Vice President for University Advancement D. President •Recruitment efforts •North East Texas initiative •Legislative budget Regent Adkison announced Regent Austin's appointment of Austin, Christopher, and Shaw to the Regents Nominating Committee. The next meeting will be April 28 and 29 in Nacogdoches. Meeting adjourned at 12 noon. Appendix 1 Computer & Network Security Original Implementation: Last Revision: None Purpose To establish conditions for use of, and requirements for appropriate security to cover University computers, available information technology, and networks. Scope This policy is effective at all University locations or data centers and represents the minimum requirements that must be in place. Individual areas that have computers and networks may have additional controls and security, but they are in addition to this Policy. Responsibility The University Computing and Telecommunications Advisory Committee is responsible for the development of university-wide policies, controls and procedures to protect the university network and information systems from intentional or inadvertent modification, disclosure of confidential information, or destruction. The committee is also responsible for education of the campus community in the ethical use of computer information and network facilities. Policy At each data center, appropriate security shall include: 1. Protection of the privacy of confidential information 2. Protection of information against unauthorized modification 3. Protection of systems against unauthorized access. In order to maintain such security, the university reserves the right to: 1. Limit, restrict, or terminate an account holder's usage 2. Inspect, copy, remove, or otherwise alter any data, file, or system resource which may undermine the authorized use of that system, with or without prior notice to the user. 3. Periodically check the systems and take any other such actions necessary to protect the university computers, information, and networks. Each data center facility at Stephen F. Austin State University must develop an internal security document to cover such details as the type of access controls (minimum length of passwords, other type of accessing, etc.), disaster recovery plans, contingency plans for continuous operation in case of power outages, etc. Those documents are considered to be part of this Policy statement. The University shall not be liable for, and the user assumes the risk of, loss of data or interference with files resulting from the University's efforts to maintain the privacy and security of the University's computer, information and network facilities. Access to, and use of computers and computer networks Individuals are expected to exercise responsible, ethical behavior when using the University's computers, information, networks or resources. 1. Access to some university computer systems, accounts and resources is limited to designated individuals. Access is provided through the establishment of an account. Issuance of passwords and designation of some computer accounts must be approved in writing through the respective dean or director (or designated representative) of the administrative unit. The unauthorized use of university computer systems, accounts and resources; the unauthorized use of another person's computer account; and the provision of false or misleading information systems are prohibited and will be subject to the sanctions described in this policy. 2. Each user is responsible for understanding and complying with the security rules of University computer systems. Authorized users shall take all reasonable precautions to prevent use of University computer systems by unauthorized persons. 3. Use of another persons' account or access to the University's computer systems without authorization is prohibited. Authorization shall not be given for anyone to use another's account(s) unless such authorization is specifically requested in writing, and approved in writing by the account owner and the respective Dean or Director (or authorized representative) of the computer or network. The authorized user(s) of an account is (are) responsible for all usage on that account. Account owners shall take all reasonable precautions, including password maintenance and file protection measures, to prevent use of accounts by unauthorized persons. Accounts must only be used for the purposes for which they were authorized. 4. Users have the responsibility to use available mechanisms and procedures to protect their own programs, programs in software libraries, and data. They also are responsible for assisting in the protection of the systems they use. 5. Individuals1 programs, programs in software libraries, and data that belong to another account shall not be accessed or copied without prior authorization from the account holder. Individuals may not transport such files to other computer sites without written permission. 6. Computer software protected by copyright is not to be copied from, into or by using University computers, except as permitted by law or by the license or contract with the owner of the copyright. The software license or contract will define number of copies, simultaneous users, machine exclusivity, etc. It is the responsibility of the individual and department which orders/purchases the software to read and follow the terms of the software license agreement. 7. University computer systems are reserved for use only for University-related activities. (See Chapter 39 of the Texas Penal Code for provisions dealing with the misuse of state property.) The intentional deletion or alteration of information or data of others, intentional misuse of system resources, and permitting misuse of system resources by others is prohibited. 8. Individuals aware of any breach of information system or network security, or compromise of computer security safeguards, must report such situations to the dean or director (or designated representative) of the data center in which the incident occurred. The data center representative will contact other campus departments as appropriate. Sanctions for policy violations Violation of any provision of this policy may result in but are not limited to: (i) a limitation on a user's access to some or all University computer systems, (ii) the initiation of legal action by the University, including, but not limited to, criminal prosecution under appropriate State and Federal laws (See Chapter 33 of the Texas Penal Code), (iii) the requirement of the violator to provide restitution for any improper use of service, and (iv) disciplinary sanctions, which may include dismissal. Applicable University discipline and/or discharge policies will be followed in the imposition of sanctions related to a violation of this policy. Course and Work Related Access to Computers and Computer Networks Many academic courses and work-related activities require the use of computers, networks and systems of the University. In the event of an imposed restriction or termination of access to some or all University computers and systems, a user enrolled in such courses or involved in computer related work activities may be required to use alternative facilities, if any, to satisfy the obligation of such courses or work activity. However, users are advised that if such alternative facilities are unavailable or not feasible, the user bears the responsibility for failure to complete requirements for course work or work responsibility. Source of Authority: Vice President for Academic Affairs, and Vice President for Business Affairs Cross Reference: None Contact for Revision: Computing and Telecommunications Advisory Committee Forms: None Appendix 2 AGREEMENT BETWEEN STEPHEN F. AUSTIN STATE UNIVERSITY AND THE STEPHEN F. AUSTIN STATE UNIVERSITY FOUNDATION, INC. L PARTIES 11 Stephen F. Austin State University (the "University") is an agency of the State of Texas, organized and existing under Chapter 101, Texas Education Code, as an institution of higher education located in Nacogdoches, Texas. The governing body of the University is the Board of Regents (collectively, the "Regents"). 1.2 The Stephen F. Austin State University Foundation, Inc. (the "Foundation") is a non-profit corporation organized under the laws of the State of Texas for the sole purpose of supporting the mission of the University. The governing body of the Foundation is its Board of Trustees (collectively, the "Trustees"). 2. PURPOSE 2.1 The Foundation is a private support organization as defined in article 6252-1 If, Texas Revised Civil Statutes C6252-11O. 2.2 The University is a state agency as defined in 6252-1 If. 2.3 The parties are entering into this agreement for the purpose of defining the relationship between them pursuant to 6252-1 If, and to implement the policy of the Regents governing the University's relationship with private support organizations. Agreement between Stephen F. Austin State University and The Stephen F. Austin State University Foundation, Inc. Page 2 PURPOSE (continued! 2.4 While this agreement is in effect, the University recognizes the Foundation as existing solely for the support of the University. The parties agree that the Foundation is a necessary and beneficial component of the University's overall program for university advancement and for the development of private sources of funding for capital acquisition, operations, endowments, scholarships, and other purposes relating to the . mission of the University. 1 TERM 3.1 Provided the Foundation has first executed this agreement, this agreement is effective upon its approval by the Regents. 3.2 This agreement will continue in effect until terminated. Either party may terminate this agreement by giving ninety days' written notice to the other party. Agreement between Stephen F. Austin State University and The Stephen F. Austin State University Foundation, Inc. Page 3 4, ORGANIZATION OF THE FOUNDATION 4.1 The direction and management of the affairs of the Foundation and the control and disposition of its assets shall be vested in a Board of Trustees which shall consist of not less than nine (9) persons and not more than thirty (30) persons. 4.2 The President of the University may serve as an ex officio. non-voting member of the Board of Trustees. 4.3 The officers of the Foundation shall be a Chairman, a Vice Chair man, and a Secretary/Treasurer. 4.4 The Vice President for University Advancement of the University will serve as the Executive Director of the Foundation pursuant to the bylaws of the Foundation and the direction of the Trustees. 5j USE OF UNIVERSITY PERSONNEL AND SPACE BY FOUNDATION 5.1 The University will provide personnel as necessary in the determination of the Vice President/Executive Director for the support of the Foundation's business activities. 5.2 The University will provide office space, equipment, and supplies as necessary in the determination of the Vice President/Executive Director for the Foundation to carry out its responsibilities. Agreement between Stephen F. Austin State University and The Stephen F. Austin State University Foundation, Inc. Page 4 53 The personnel services, office space, equipment, and supplies provided by the University under this agreement will be made without charge to the Foundation. 5.4 However, any conflict between University employees' fiduciary responsibilities to cither the University or the Foundation will be resolved in favor of the University. & FOUNDATION INVESTMENTS AND RECORD-KEEPING 6.1 The Foundation shall hold, invest, and account for all funds belonging or entrusted to it in accordance with the Investment Policy of the SFASU Foundation, Inc. as approved by its Board of Trustees in January, 1995 (Attachment "A"). In discharging its responsibility for management of such funds the Foundation will retain a qualified investment management consultant who is independent of the security brokerage firms that execute transactions for the accounts of the Foundation. Periodic reports of the Foundation accounts and investments shall be provided to the University. Agreement between Stephen F. Austin State University and The Stephen F. Austin State University Foundation, Inc. Page 5 6.2 The University shall have the right to audit the books and records of the Foundation concerning Foundation investments at any time. 1 PAYMENT OF FUNDS TO THE IJNTVERSITY 7.1 Payments to the University from Foundation endowed accounts shall be made on a semi-annual basis. 7.2 Payments to the University from Foundation nonendowed accounts shall be made on a timely basis. 7.3 Payments to the University of gifts for specific programs and/or projects made through the Foundation shall be made within thirty (30) days of receipt of the gift. 7.4 The Vice President for University Advancement/Executive Director shall coordinate all payment schedules with appro priate University officials. 7.5 The Foundation may reimburse University Employees for expenses incurred in the conducting of Foundation business, for services rendered on behalf of the Foundation, and as awards for exemplary service or achievement. & FUND RAISING EFFORTS OF FOUNDATION 8.1 The coordination of the Foundation's fund raising efforts shall be through the Vice President for University Advancement/Executive Director reporting to the President of the University. Agreement between Stephen F. Austin State University and The Stephen F. Austin State University Foundation, Inc. Page 6 FUND RAISING EFFORTS OF FOUNDATION 8.2 The Foundation is authorized to raise funds for the University in three (3) broad areas: Regular Gifts - Special Gifts - Ultimate Gifts - those gifts which are solicited and received on a regular basis cither restricted or unrestricted utilizing speculative techniques such as direct mail and telemarketing. those gifts which are solicited and received on an as-needed basis for specific items, programs and/or projects generally involving personal or formal approaches. those large gifts capable of making major impacts upon the quality of teaching, research and service involving highly personal cultiva tion and solicitation approaches including estate planning vehicles. 8.3 The Office of University Advancement shall maintain all donor lists, files and gift records and will coordinate all donor recognition activities. President Stephen F. Austin State University Date Chairman Date Stephen F. Austin State University Foundation, Inc. Stephen F. Austin State University Foundation, Inc. Endowment Plan Investment Policy Statement I. Purpose of the Investment Policy Statement A. This Statement of Investment Policy outlines the objective, goals and guidelines for the Foundation Endowments and is set forth in order that: 1. There be a clear understanding between the Stephen F. Austin State University Foundation, Inc. Board of Trustees (hereafter referred to as Board of Trustees) and the Investment Committee to insure compliance within the investment objectives and policies of Endowments. 2. The Investment Committee be given guidance and limitations in the investment of the Endowment assets. 3. The Board of Trustees have a meaningful basis for the evaluation of the portfolio management by the Investment Committee, Investment Advisor, Financial Officer, and Fund Managers in order that the Board of Trustees meet its responsibility to prudently monitor investment of the Endowments. B. The Endowments shall be managed at all times in accordance and compliance with the standard of prudent investment. 1. The investment of the Endowments assets shall be for the exclusive purpose of providing resources for the recipients as outlined by each Endowment agreement. 2. The investment shall be prudently selected to mirtimize credit risk and interest rate risk, and properly diversified so as to minimize market risk. C. It is the intent of this document to state general attitudes, guidelines and a philosophy which will guide the Investment Committee toward the performance desired. It is intended that the investment policies be sufficiently specific to be meaningful but adequately flexible to be practicable. II. Responsibilities of the Board of Trustees A. The specific responsibilities of the Board of Trustees in the investment process include but are not limited to: 1. Complying with all applicable rulings and regulation of relevant regulatory agencies. 2. Complying with all applicable rulings and regulations concerning prudent investing. 3. Determining the Foundations/University's projected financial needs and communicating them to the Investment Committee on a timely basis. 4. Expressing the Foundations risk tolerance level. 5. Developing sound and consistent investment policy guidelines which the Investment Committee can use in formulating investment decisions. 6. Establishing reasonable investment objectives. 7. Selecting qualified Investment Manager(s) 8. Communicating clearly the major duties and responsibilities of the Investment Committee, and Financial Officer. 9. Monitoring and evaluating performance results to assure that policy guidelines are being adhered to and that objectives are being met. . 10. Taking appropriate action to replace an Investment Managers) for failure to perform as expected. B. The Board of Trustees recognizes that its role is advisory as to investment strategy and policy. The determination and selection of specific investments and securities must be delegated to the Investment Committee. C. The investment policy objectives, goals and guidelines that follow represent the current views of the Board of Trustees regarding the investment of the Foundations assets. The Investment Policy Statement will need to be reviewed and possibly revised from time to time to ensure that this Statement continues to reflect the Board of Trustees attitudes, expectations and objectives. D. The Board of Trustees will select an Investment Advisor to evaluate and monitor performance and to provide independent analysis and recommendation to the Investment Committee, and Financial Officer. E. Custodial: The Board of Trustees will select a suitable custodian and its agent / broker to oversee all securities and brokerage transactions and will provide monthly detail of all such transactions to the Investment Committee, Financial Officer, and Investment Advisor and any firms selected to monitor the Investment Manager(s). III. Responsibilities of the Investment Manager(s) A. Adherence to Investment Policy Statement 1. The Investment Manager(s) are expected to respect and observe the specific limitations, guidelines, attitudes and philosophies stated herein, or as expressed in any written amendments. 2. Each Investment Manager's acceptance of the responsibility to manage assets of the Foundation will constitute a ratification of this Investment Policy Statement, affirming the belief that they are realistically capable of achieving the Foundation's objectives within the guidelines and limitations stated herein. B. Discretionary Authority The Investment Manager(s) will be responsible for making all investment decisions on a discretionary basis regarding all assets placed under its jurisdiction and will be held accountable for achieving the investment objectives indicated herein. Such discretion shall include decisions to buy, hold, and sell securities in amounts and proportion that are reflective of each Investment Manager's current investment strategy and compatible with the Foundation's investment policy. C. Communication 1. Each Investment Manager will keep the custodian informed on a timely basis of major changes in its investment outlook, investment strategy, asset allocation, and other matters affecting the investment policies or philosophy. 2. The Investment Committee shall be informed of any significant changes in the ownership, organization structure, financial condition, or senior staffing of each Investment Management firm. 3. Whenever the Investment Managers) believes that any particular guideline should be altered or deleted, it will be the responsibility of the Investment Manager(s) to initiate written communication with the Foundation through the Investment Committee expressing its views and recommendations. D. Reporting 1. The Investment Committee expects to receive timely nonces of transaction activities as well as monthly statements and quarterly performance reports. 2. In addition, any information needed to assist the Investment Committee in conducting an evaluation of the Investment Manager(s)1 performance as it relates to Foundation assets will be presented on a timely basis. This will include transactions activities and commissions generated to compensate the custodian for consulting and other services as specified under Section 28(e) of the Securities and Exchange Commission Act of 1934. E. Proxy Voting: The Investment Manager(s), as part of its duties and responsibilities, shall have sole and exclusive right to vote any and all proxies solicited in connection with securities held by the Foundation. The Investment Managers) shall keep accurate records with respect to its voting of proxies. F. Investment Transactions: Understanding that the Investment Manager(s), as fiduciary, has the responsibility to execute every transaction in the best interests of the Investment Committee and Foundation, the Foundation reserves the right to direct brokerage commission to firms which provide beneficial services directly to the Foundation, recognizing that the cost of such services would otherwise have to be paid in hard dollars from the Foundation. IV. Investment Philosophy The SFA Foundation investment policy has the dual goals of investing to preserve the purchasing power of the assets throughout time and to provide a stable flow of funds to meet spending commitments. Preserving the purchasing power of assets allows future generations to benefit from the endowment at the same level as the current generation. Current income from investments is necessary to support the University's present activities. A economic trade - off exists between these two goals. Devoting excessive investments to the goal of providing stable current funds would allow purchasing power risk to erode the value of investment assets. Devoting excessive investments to the goal of growth of the investment assets would introduce volatility into the flow of funds available for current spending. Thus the Board of Trustees are continually striving to balance the tension that these conflicting objectives creates. The Board of Trustees has elected to use a laddered maturity strategy to increase the probability that income will be sufficient to meet spending requirements without invading the invested principal. The remainder of the portfolio, not invested in fixed income securities, is invested in equity securities which will allow preservation of the purchasing power of the assets under management. The equity investments are broadly diversified to reduce the risk of principal loss. •V, INVESTMENT GOALS AND OBJECTIVES The Plan is a balanced portfolio composed of equities, fixed income, and cash equivalent securities and, as such, is intended to be slightly more aggressive than fixed income-oriented portfolios. (More than one investment Managers) may be hired to manage assets of the Foundation, and one or more investment Manager may be woiicing with a portion of the portfolio that is not "balanced11 among asset classes but may be limited to only one asset class, such as equities, or a subset, such as foreign equities.) In this context "aggressive" refers to such issues as the selection of investment vehicles, the degree of diversification among economic and industry sectors and individual securities, and the expected long-term rates of return and return volatility. Within this framework, the investment objectives for the Foundation are stated below in order of importance: 1. Preservation of capital - Over the investment time horizon, capital gains are to be protected. A positive return must be experienced over the investment time horizon, considered to be a three year period. 2. Preservation of purchasing power - Asset growth, exclusive of contributions and withdrawals, should exceed the rate of inflation in order to preserve purchasing power of the participants1 assets. 3. Yield - A target yield will be set given the spending requirements set by the Board of Trustees. 4. Liquidity - In response to Foundation's need to make distributions Semi-annually, adequate cash will need to be available. Investment Managers will be compared annually to other investment managers with similar goals, investing in a similar universe of securities. To generate an overall investment performance which will be compared to the following market indices: Consumer Price Index (CPI), Standard & Poor's 500 stock index (S&P 500), Lehman Government/Corporate bon index (SLGC), Wilshire 2000, Europe, Australia, and Far East (EAFE), and US Treasury bills. Each of the Investment Managers will be compared to other investment managers with similar investment styles and selecting securities from a similar universe of securities. For a one year time horizon, the Investment Manager should achieve a ranking within the top 50% of similarly managed portfolios. VI. INVESTMENT GUIDELINES -The Foundation recognized that risk (i.e. the uncertainty of future events), volatility, (i.e., the potential of variability of asset values), and the possibility of loss in purchasing power (due to inflation) are present to some degree in all types of investment vehicles. While high levels of investment risk are to be avoided, the assumption of risk is warranted and encouraged in order to allow the Investment Manager(s) the opportunity to achieve satisfactory long-term results consistent with objectives and character of the Endowments. A. Types of assets All assets selected for the portfolio must have a readily ascertainable market value and must be readily marketable. In order to provide the Investment Manager(s) with flexibility to invest in various types of assets, the following lists the types of assets among those approved for investment: Equities Common Stocks Preferred Stocks, which must be cumulative and convertible, or cumulative with warrants attached Convertible securities including debentures American Depository Receipts (ADRs) of Foreign Companies Other investment securities consistent with the Investment Managers objectives. Fixed Income Investments US Government and Agency bonds, notes and bills Commercial paper Certificates of Deposit Corporate bonds Mortgage backed securities Other investment securities consistent with the Investment Managers objectives. The following types of assets or transactions are expressly prohibited: Commodities Futures and options, except for hedging purposes to reduce portfolio risk Unrestricted letter stock Private placements Securities purchased on margin Short selling Real estate Venture capital Exotic Derivative(s) Limited partnerships Precious metals B. Asset allocation It shall be the policy of the Plan to invest its total assets in accordance with the maximum and minimum range for each asset category as stated below: Asset category Minimum Target Maximum Equities 40% 49% 65% Suggested Breakdown of Equities: Large Capital Growth 25% 30% 40% Large Capital Value 25% 30% 40% Small Capital Growth 5% 10% 15% Small Capital Value 5% 10% 15% International Equities 15% 20% 30% Fixed income 30% 49% 75% Cash and short term ' .5% 2% 10% The asset mix policy and acceptable minimum and maximum ranges established by the Foundation for the Endowments represent a long-term view. Is subject to change by a recommendation of the Investment Committee and ratified by the Board of Trustees. The Portfolio will be re-balanced semi-annually to the target portfolio weights. As such, rapid and significant market movements may cause the actual asset mix to occasionally fall outside the policy range, but it is expected that any divergence should be of a short-term nature. If more than one investment Manager is used, the sum of all assets of the Endowments will fall within the above ranges. C. Stocks 1. Diversification - The equity portfolio should be well-diversified to avoid undue exposure to any single economic sector, industry group of individual security. The Investment Committee will diversify by geographic location so as to include exposure to International securities. The portfolio will be diversified by style of management, and by size of capitalization of issuers. 2. Quality and marketability - Common and convertible preferred stocks should be of a good quality and listed on either the New York or American Stock Exchange or traded in the over-the-counter market or foreign market with the requirement that such stocks have adequate market liquidity relative to the size of the investments. 3. Concentration by Issuer Security holdings of any one issuer may not represent more than 5% of fund total portfolio value with exclusion of the United States Government, Holdings of any one security may not represent more than 10% of the issue outstanding. D. Fixed Income Investments 1. Quality - Marketable bonds must be Baa or BBB rated or better at all times. 2. Concentration by issuer: a. No limitations are placed in investment in US Government guaranteed obligations, including fully guaranteed Federal agencies. b. Investment in any one issuer (excluding obligation of the US Government either direct or implied) shall not exceed 5% of total fixed income fund assets based on market value at the time of purchase. 3. Maturity - No fixed income securities should have a maturity of longer than ten years at the time of purchase, nor an average life in aggregate exceeding seven yean. Except where fixed income instruments are used to match a liability such as a gift annuity. E. Short Term Investments 1. Commercial paper a. Quality - Investment must have a raring of not less than Al by Standard & Poor's or PI by Moody's. b. Concentration by issuer - Investment in any one issuer shall not exceed 5% of total Plan assets at the rime of purchase. 2. Certificates of Deposit Will be F.D.I.C. insured or if more than Insurance limit will be backed by pledged securities of acceptable quality. F. Portfolio fluctuation - The volatility of returns will be monitored and evaluated by the Investment Committee on a continuing basis. VII. INVESTMENT PERFORMANCE REVIEW AND EVALUATION A. Performance results for the Investment Manager will be measured on a quarterly basis. B. Total Plan performance will be measured against a balanced market index weighed to match the long-term asset mix policy in the Plan as stated in Section VI. B. C. The investment performance of the total portfolio and equity and fixed income segments (both in terms of return and risk) will be measured against commonly accepted bench marks. D. Consideration shall be given to the extent to which the investment results are consistent with the investment objectives, goals and guidelines as set forth in this statement E. While the Foundation intends to fairly evaluate portfolio performance over the agreed period of evaluation, the Board of Trustees reserves the right to change the Investment Managers) if there is: 1. Unacceptable justification for poor results. 2. Lack of responsiveness to the Foundation's overall concern about the market or inflexibility of approach. 3. Failure to meet Foundation's communication and reporting requirements. 4. Changes in Foundation's investment objectives and/or goals. 5. Sufficient reason in the sole judgment of the Foundation to believe a change of Investment Manager(s) would be beneficial. AGREEMENT BETWEEN STEPHEN F. AUSTIN STATE UNIVERSITY AND THE STEPHEN F. AUSTIN STATE UNIVERSITY ALUMNI ASSOCIATION PARTIES/PURPOSE 1.1 Stephen F. Austin State University ("the University") is an agency of the State of Texas, organized and existing as an institution of higher education located in Nacogdoches, Texas. The governing body of the University is the Board of Regents (collectively, "the Regents"). Under Chapter 2255 of the Texas Government Code ("Chapter 2255") the University is an "agency" or "state agency." 1.2 The Stephen F. Austin State University Alumni Association ("the Alumni Association") is a non-profit corporation organized under the laws of the State of Texas. The governing body of the Alumni Association is its Board of Directors (collectively, "the Directors"). Under Chapter 2255 the Alumni Association is a "private organization11 or "organization." 1.3 The parties are entering into this agreement for the purpose of complying with the requirements set forth under Chapter 2255. TERM 2.1 Provided the Alumni Association has first executed this agreement, this agreement is effective upon its approval by the Regents. 2.2 This agreement will continue in effect until terminated. Either party may terminate this agreement by giving ninety days' written notice to the other party. ORGANIZATION OF THE ALUMNI ASSOCIATION 3.1 The direction and management of the affairs of the Alumni Association and the control and disposition of its assets is vested in the Directors which consists of twenty-one persons; fourteen persons elected at large, the president, two vice-presidents, secretary-treasurer, the executive director, the immediate past president of the Association, and the last elected president of the Student Congress of the University. 3.2 The officers of the Alumni Association are a president, two vice presidents, an executive director, and a secretary-treasurer. PROVISIONS REGARDING PERSONNEL, SPACE, AND SUPPLIES PROVIDED BY THE UNIVERSITY TO THE ALUMNI ASSOCIATION 4.1 The University pays portions of the salaries of the following Alumni Association personnel: Executive Director; Assistant to Executive Director; Accounting Clerk; and Secretary. 4.2 The Alumni Association utilizes as its office space the Alumni Association Building, located contiguous to the Stephen F. Austin State University Center. The Alumni Association Building was built in the early 1980s and expanded in the late 1980s, in each case with funds raised by the Alumni Association. 4.3 The University in its discretion will provide from time-to-time additional personnel for the support of the Alumni Association's activities. 4.4 The University in its discretion will provide from time-to-time additional office space, equipment, and supplies for the Alumni Association to carry out its responsibilities. 4.5 The personnel services, office space, equipment, and supplies provided by the University in its discretion from time-to-time under this agreement shall be provided without charge to the Alumni Association. 4.6 Any conflict, however, between the University's employees' fiduciary ' responsibilities to either the University or the Alumni Association will be resolved in favor of the University. ALUMNI ASSOCIATION INVESTMENT AND ADMINISTRATION OF FUNDS 5.1 The Alumni Association will hold, invest, and account for all funds belonging or entrusted to the Alumni Association in accordance with ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision. (To that end, the Alumni Association will attempt whenever and to the greatest extent possible to follow the Investments Guidelines Policy promulgated by the Investment Committee of the Stephen F. Austin State University Alumni Foundation.) Periodic reports of Alumni Association accounts and investments shall be available for review by request of the University not less than quarterly. 5.2 Concerning investments, the University and the Alumni Association shall have the right to audit the books and records of either party at any time. President Date Stephen F. Austin State University President Date Stephen F. Austin State University Alumni Association Appendix 4 AGREEMENT BETWEEN STEPHEN F. AUSTIN STATE UNIVERSITY AND THE STEPHEN F. AUSTIN STATE UNIVERSITY ALUMNI FOUNDATION PARTIES/PURPOSES 1.1 Stephen F. Austin State University ("the University") is an agency of the State of Texas, organized and existing as an institution of higher education located in Nacogdoches, Texas. The governing body of the University is the Board of Regents (collectively, "the Regents"). Under Chapter 2255 of the Texas Government Code ("Chapter 2255") the University is an "agency" or "state agency." 1.2 The Stephen F. Austin State University Alumni Foundation ("the Alumni Foundation") is a non-profit corporation organized under the laws of the State of Texas. The governing body of the Alumni Foundation is its Board of Directors (collectively, "the Directors"). Under Chapter 2255 the Alumni Foundation is a "private organization" or "organization." 1.3 The parties are entering into this agreement for the purpose of complying with the requirements set forth under Chapter 2255. TERM 2.1 Provided the Alumni Foundation has first executed this agreement, this agreement is effective upon its approval by the Regents. 2.2 This agreement will continue in effect until terminated. Either party may terminate this agreement by giving ninety days1 written notice to the other party. ORGANIZATION OF THE ALUMNI FOUNDATION 3.1 The direction and management of the affairs of the Alumni Foundation and the control and disposition of its assets is vested in the Directors which consists of nine persons; six persons elected at large, the immediate past president of the Stephen F. Austin State University Alumni Association, the president of the Alumni Association, and the executive director of the Alumni Association. 3.2 The officers of the Alumni Foundation are a Chairman of the Directors, a First Vice-Chairman of the Directors, a Second Vice-Chairman of the Directors, and a Secretary-Treasurer of the Directors. PROVISIONS REGARDING PERSONNEL, SPACE, AND SUPPLIES PROVIDED BY THE UNIVERSITY TO THE ALUMNI FOUNDATION 4.1 The University in its discretion will provide from tirae-to-time personnel for the support of the Alumni Foundation's activities. 4.2 The University in its discretion will provide from time-to-time office space, equipment, and supplies for the Alumni Foundation to carry out its responsibilities. 4.3 The personnel services, office space, equipment, and supplies provided by the University in its discretion from time-to-time under this agreement shall be provided without charge to the Alumni Foundation. 4.4 Any conflict, however, between the University's employees' fiduciary responsibilities to either the University or the Alumni Foundation will be resolved in favor of the University. ALUMNI FOUNDATION INVESTMENT AND ADMINISTRATION OF FUNDS 5.1 The Alumni Foundation will hold, invest, and account for all funds belonging or entrusted to the Alumni Foundation in accordance with ordinary business care and prudence under the facts and circumstances prevailing at the time of the action or decision. To that end, the Alumni Foundation has created an Investment Committee ("the Investment Committee"). The Investment Committee has promulgated, and the Alumni Foundation has approved, an investments guidelines policy, which is available for review by request of the University at any time. The Alumni Foundation reserves the right to amend its investments guidelines policy as and when necessary or appropriate to do so. Periodic reports of Alumni Foundation accounts and investments shall be available for review by request of the University not less than quarterly. 5.2 Concerning investments, the University and the Alumni Foundation shall have the right to audit the books and records of either party at any time. President Date Stephen F. Austin State University Chairman Date Stephen F. Austin State University Alumni Foundation Investments Guidelines Piffle The Investment Committee of the Stephen F. Austin State University Alumni Foundation ( the Foundation11) has adopted the following Investments Guidelines Policy: • One or more professional money managers shall be engaged to invest the majority of the Foundation s funds in accordance with ordinary business care and prudence under the facts and circumstances prevailing at the time of each action or decision. • The professional money managers shall invest the Foundation's funds in 'Treasuries Accounts"and "Equities Accounts" (as defined and further provided below), with the goal being to maintain a ratio between the Treasuries Accounts and the Equities Accounts at all times as close to 60% to 40% as practicable. • Treasuries Accounts At no time will any of the principal of the Funds1 in the Treasuries Accounts be invested in other than: Treasury Bills; Treasury Bonds; and/or Treasury Notes, except with the express written consent of the Foundation; provided, however (a) as and when interest payments are made in respect of a Treasury Bill,2 Treasury Bond, or Treasury Note, those proceeds posted to the Treasuries Accounts shall promptly be invested in a money market account (which is on a day-in-day-out basis) pending instructions from the Foundation; and (b) proceeds from a Treasury Bill, Treasury Bond, or Treasury Note which matures or is sold (which proceeds shall constitute principal of the Funds) shall promptly be reinvested in a Treasury Bill, Treasury Bond, or Treasury Note unless the professional money manager determines it is impossible, impracticable, or untimely to do so, in which case those proceeds shall promptly be invested in a money market account (which is on a day-to-day basis) pending reinvestment at the earliest appropriate time. With respect to the portfolio value of the principal of the Funds in the Treasuries Accounts (as determined on a daily basis) the professional money manager: • shall invest at least 50% cost of portfolio value in Treasury Bills, Treasury Bonds, or Treasury Notes having maturity dates not longer than five years 1 "Principal of the Funds" means the funds of die Foundation which are initially transferred to the professional money manager and any funds of the Foundation transferred from time to time thereafter (unless expressly designated otherwise by the Foundation at the time of any subsequent transfers), the permutations thereof, and capital gains in respect thereof. Thus, "principal of the Funds" is to be distinguished from interest earned thereon and interest earned on such interest which has ^n^Mh^ from time to time. 2In the case of a Treasury Bill an "interest payment" or "interest earned thereon" shall mean the payment received in respect of that Treasury B ill which equals the difference between the purchase price of that Treasury Bill and the redemption proceeds received in respect of that Treasury BilL 1 from the date each of the same is acquired by the professional money manager; and • may invest up to 50% cost of portfolio value in Treasury Bills, Treasury Bonds, or Treasury Notes having maturity dates up to ten years from the date each of the same is acquired by the professional money manager. Equities Accounts At no time will any of the principal of the Funds in the Equities Accounts be invested in other than 'quality equities' (fQEf) except with the express written consent of the Foundation; provided, however (a) as and when dividend payments are made in respect of QE, those proceeds posted to the Equities Accounts shall promptly be invested in a money market account (which is on a day-in-day-out basis) pending instructions from the Foundation; and (b) proceeds from QE which mature or are sold (which proceeds shall constitute principal of the Funds) shall promptly be reinvested in QE unless the professional money manager determines it is impossible, impracticable, or untimely to do so, in which case those proceeds shall promptly be invested in a money market account (which is on a day-to-day basis) pending reinvestment at the earliest appropriate time. The following qualifications and restrictions shall apply at all times to the Equities Accounts: • with respect to the portfolio value of the principal of the Funds in the Equities Accounts (as determined on a daily basis), the professional money manager may not invest more than: •• 5% cost of portfolio value in any one issue of stock; •• 15% cost of portfolio value in any one industry; •• 15% cost of portfolio value in foreign securities, including American depository receipts (ADRs) (current examples of ADRs are Schlumberger, Ltd., Grand Metropolitan PLL ADS, Telefonos de Mexico, and Nestle), subject to the two immediately preceding investment restrictions. Any of the foregoing notwithstanding, the professional money manager shall not engage in any of the following: •• commodities trading (including all future contracts); •• purchase of letter stock; •• short selling; or •• option trading. With respect to the Equities Accounts, the Foundation is hereby interested in and hopeful that the professional money manager will be able to secure the highest total return on the Funds in the Equities Accounts, consistent with prudent management and diversification and in accordance with the guidelines set forth above. appendix :>